Jacobs Solutions (NYSE: J) has announced a significant development with the spin-off of its Critical Mission Solutions and Cyber & Intelligence Government Services businesses. The distribution record date has been set for September 23, 2024, and the distribution and closing date for the spin-off and merger with Amentum is scheduled for September 27, 2024.
Upon completion of the spin-off and merger transactions, Jacobs' shareholders will own 51% of the issued and outstanding shares of common stock of Amentum, with Jacobs retaining a 7.5% ownership. An additional 4.5% of issued and outstanding common stock of Amentum, referred to as "contingent consideration," will be placed in escrow.
Following the distribution, Jacobs expects that a "when-issued" public trading market for Amentum common stock will commence on the New York Stock Exchange (NYSE) on or about September 24, 2024, under the ticker symbol "AMTM WI." Regular-way trading of Amentum common stock is anticipated to begin on September 30, 2024, under the ticker symbol "AMTM."
As for Jacobs, it will continue to trade in the regular way on the NYSE under the ticker symbol "J." Beginning around September 24, 2024, and continuing up to and including the distribution date, there will be two ways to trade Jacobs common stock on the NYSE: with or without the distribution of Amentum common stock.
Jacobs, a premier technology-enabled solutions provider, has an annual revenue of approximately $16 billion and a talent force of more than 60,000. Amentum, the company resulting from the spin-off and merger, is poised to be a leading provider of engineering and technology solutions for the U.S., the U.K., and other allied governments, with over 35,000 employees in 79 countries across all seven continents.
These developments mark a significant milestone in the strategic reorganization of the two entities, each with a clear strategy for long-term value creation. The completion of the spin-off and merger will create a new publicly traded company listed on the NYSE named Amentum Holdings, Inc.
As the spin-off and merger are expected to be completed on September 27, 2024, investors and shareholders are advised to consider the implications of buying or selling shares of Jacobs common stock before and after the distribution date, and to consult with their financial advisors for specific guidance. Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $144.24. If you want to know more, read the company's complete 8-K report here.
