Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, January 10, 2025

Article Excerpt

AMENTUM HOLDINGS INC., $22.51, symbol AMTM in New York, provides advanced engineering and technology solutions to the U.S. government and its allied partners (90% of revenue) and commercial customers (10%). It sells to energy, environmental, intelligence, space, defence, civilian and commercial markets. On September 27, 2024, Amentum completed a major merger with the Critical Mission Solutions (CMS) and Cyber and Intelligence (C&I) businesses of Jacobs Solutions (symbol J on New York). Initially announced in November 2023, the merger created a company with $13 billion in revenue, operating in over 83 countries, and with a combined backlog of $50 billion. The transaction involved Jacobs spinning off its CMS and C&I businesses into a separate company that then merged with Amentun. Following the completion of the merger, Jacobs’ shareholders owned 51% of Amentum, and Jacobs itself retained 7.5% of the merged entity. Amentum shareholders held the majority of shares remaining. Jacobs received $1 billion in cash as part of the transaction and expects to sell…