Jacobs Solutions Sets Milestone For Amentum Spin-Off Deal

Jacobs Solutions Sets the Record for Amentum Spin-Off

Jacobs Solutions has made significant strides towards its spin-off of the Critical Mission Solutions and Cyber & Intelligence government services businesses. The Board of Directors has officially announced the record date for this important corporate restructuring as the end of business on September 23, 2024. This decision represents a pivotal moment for Jacobs and its shareholders.

What to Expect During the Distribution

On the distribution date set for September 27, 2024, all holders of Jacobs common stock will receive shares in Amentum Holdings, Inc. for every one share held. This means that for each share of Jacobs stock a shareholder retains by the record date, they are entitled to an equal share of Amentum common stock without any action required on their part. The shares can be reflected through a book-entry account statement or directly credited to their brokerage accounts, making this transition seamless for shareholders.

Ownership Structure Post Spin-Off

After the completion of the spin-off, Jacobs’ shareholders will collectively own 51% of Amentum, while Jacobs will retain a 7.5% stake. Additionally, there are provisions for a contingent 4.5% of Amentum’s shares to be held in escrow, which may be distributed to Jacobs and its shareholders based on specific financial performance targets achieved by the Critical Mission Solutions and Cyber & Intelligence units. This structured ownership provides a clear roadmap for future equity distribution as performance metrics are met.

Trading Details for Amentum Stock

Amentum common stock is expected to start trading on a “when-issued” basis on the New York Stock Exchange under the ticker symbol “AMTM WI” around September 24, 2024. Regular trading is anticipated to begin on September 30, 2024, with the ticker symbol changing to “AMTM.” Meanwhile, Jacobs will continue to trade under “J” on the NYSE.

Market Implications for Jacobs Shareholders

As the spin-off approaches, Jacobs shareholders will have options when trading their shares. Those who sell their Jacobs stock under the regular trading symbol “J” prior to the distribution may be forfeiting their rights to the forthcoming Amentum shares. Conversely, selling shares under the “ex-distribution” symbol “J WI” allows shareholders to retain their rights to the upcoming Amentum shares while liquidating their Jacobs stock.

The Vision for Jacobs and Amentum

Jacobs Solutions aims to reinvent its business model to tackle pressing global challenges and create lasting value. According to CEO Bob Pragada, this spin-off marks a crucial step in establishing two specialized companies, each focused on long-term growth and strategic excellence. Jacobs will continue providing innovative technology-driven solutions while Amentum, led by CEO John Heller, will concentrate on governmental engineering and technical services.

Understanding Amentum's Role Post-Separation

Amentum, which will emerge as a notable player in global engineering and project management, is set to engage in critical missions around the world. The company is committed to a methodology rooted in ethics, safety, and inclusivity, aligning with Jacobs' values and mission to solve complex issues that affect societies globally.

About Jacobs

Jacobs has carved a distinguished place in the industry by addressing the world's pressing challenges through cutting-edge technology and innovative strategies. With annual revenues reaching approximately $16 billion and a workforce of over 60,000 professionals, Jacobs offers a comprehensive range of services aimed at government and private sector needs.

About Amentum

Amentum stands at the forefront of engineering and project management solutions, demonstrating a commitment to developing safer, smarter, and cleaner environments. With a global workforce exceeding 35,000 in numerous countries, Amentum positions itself as a leader ready to tackle significant challenges across the globe.

Frequently Asked Questions

What is the record date for Jacobs' spin-off?

The record date for the spin-off is set for September 23, 2024.

When will Amentum shares start trading?

Amentum shares are expected to commence trading on September 24, 2024, under the ticker symbol “AMTM WI.”

What percentage of Amentum will Jacobs shareholders own?

Jacobs shareholders will own 51% of Amentum's shares post spin-off.

Will a shareholder need to take action to receive Amentum shares?

No action is required from shareholders; they will automatically receive their Amentum shares.

How will the ownership structure work after the spin-off?

Jacobs shareholders will retain 51%, Jacobs will own 7.5%, and additional shares will be distributed based on contingency agreements.

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