Amentum and branches of Jacobs Solutions specializing in government and cyber-related work are poised to launch a new publicly-traded Amentum next month with deep footprints in nuclear, space exploration and defense work for the U.S. and its allies, executives said last week.
“Following the combination, Amentum will generate revenues of approximately $14 billion. And importantly, the business will have a combined backlog of more than $47 billion,” said Steve Demetriou, the former CEO and current chair of Jacobs, who will serve as executive chair of the new Amentum.
The combined company “will be [the] largest government service contractors with a global workforce of over 53,000 across approximately 80 countries,” Demetriou said during an Aug. 13 Capital Markets Day in New York. The new Amentum will be publicly traded on the New York Stock Exchange.
The deal announced in November 2023 should close in September, Jacobs said recently. A copy of the recent slide presentation, a transcript and a recording of the Capital Markets Day session are on Amentum’s investor website.
More than 100 managers from both companies have been working on the merger for the past 10 months, Demetriou and John Heller said during the event. Heller has been Amentum CEO since May 2022, and will be CEO of the new Amentum. Heller previously was CEO of PAE, a government contractor bought by Amentum.
In the nuclear weapons complex, Amentum has a history dating back to the Manhattan Project era, Heller said.
“Fast forward to today, our relationship with the Department of Energy has put us in a prime position to be the leader in environmentally remediation work at Oak Ridge, Savannah River, and many other locations,” Heller said.
In the coming decades, Heller said the merged Amentum-Jacobs team is well positioned to help DOE whittle down its $500 billion in environmental liabilities.
“It’s complex work. It’s high hazard,” said Steve Arnette, longtime Jacobs executive who assumes the role of chief operating officer for the new Amentum. “And our teams do it safely and well. We’re well trusted to do that [environmental remediation],” he said. That’s also true in the United Kingdom where “we are cleaning up sites such as the Sellafield site and several other legacy sites,” Arnette said.
“One of the things that we’re really excited about is that over 84% of our revenue in fiscal year 2025 is going to come from existing programs,” said Travis Johnson, the chief financial officer for the legacy Amentum and the combined company. “ The remainder, obviously, from re-compete and new business.”