Maryland-based Amentum, one of the dominant players in the Department of Energy weapons complex, has completed its $1.9-billion purchase of PAE, a Virginia-based defense and government services contractor, the companies said this week.
The deal, which PAE characterized as a “merger” was announced by the parties in October. PAE’s “go-shop” period in which it could talk to other potential bidders, expired in early December.
“Acquiring PAE is a meaningful step forward in our commitment to being the best partner to our clients,” Amentum CEO John Vollmer said in a Tuesday press release. “We look forward to bringing the best people and the most differentiated solutions to support our clients’ success across defense and civilian agencies, while accelerating our growth in intelligence and technology services.”
“Over the past 66 years, the PAE brand has become recognized for achieving success through global mission services around the world,” PAE’s interim president and CEO Charlie Peiffer said in a press release. “Thanks to our new team at Amentum, we will continue to provide world-class support to our clients with the best growth opportunities for our employees.”
PAE common stock and warrants have ceased trading on, and will be delisted from, the Nasdaq stock exchange. With completion of the deal, PAE stockholders became entitled to receive $10.05 per share in cash, said the company, originally known as Pacific Architects and Engineers. PAE was founded in California in 1955 by Edward Shay to assist the U.S. government in rebuilding Asia in the years following World War II. Amentum is acquiring PAE in a cash deal that includes assumption of debt.
According to industry speculation, PAE was one of the unsuccessful bidders for DOE’s Hanford Site services $4-billion site service contract that went to Leidos-led Hanford Mission Integration Solutions in spring 2020.
Within the past three months, PAE companies have been awarded an operations support contract at the Al Udeid Air Base in Qatar and services for U.S. military vehicles at facilities throughout Europe.
