Jacobs highlights ownership stake in new, public Amentum

Dallas-based Jacobs Solutions this week praised the Sept. 27 completion of the spinoff of its government contracting and cyber-intelligence businesses, which leaves Jacobs and its shareholders as key owners of the new publicly-traded Amentum Holdings.

The September transition, known as a Reverse Morris Trust transaction, where some assets are moved to a third party, in this case Virginia-based Amentum. The move resulted in the birth of the new Amentum Holdings, which trades on the New York Stock Exchange under the ticker (AMTM), Jacobs said in its Tuesday earnings release.

Jacobs received about $911 million in cash upon closing and is using it to pay down debt, Jacobs said in its earnings slide presentation.

“Jacobs now beneficially owns 7.5% of Amentum shares with the potential to receive an additional 0.5%,” Jacobs said in the presentation. As part of the deal, Jacobs’ shareholders received 51% of Amentum shares “with the potential to increase up to 55%.”

The transaction “marks a pivotal moment for Jacobs, enabling us to operate as a more unified and focused company” in areas like water, environmental and critical infrastructure, Jacobs’ Chair and CEO Bob Pragada said in the earnings release.

Amentum Holdings planned to discuss fiscal 2024 financial performance in a Dec. 17 conference call with Wall Street analysts.