CHANTILLY, VA., November 20, 2023 – Amentum announced today a definitive agreement to merge with Jacobs’ (NYSE:J) Critical Mission Solutions (CMS) and Cyber and Intelligence (C&I) businesses, creating a new leader in systems integration and technology solutions trusted by the United States and its allies to modernize their most complex missions around the world. The combined organization will be a publicly traded company with $13 billion in revenue and more than 53,000 employees in 83 countries.

“Uniting our great organizations – Amentum, CMS, and Cyber & Intelligence Solutions – creates a leading provider of systems integration and technology solutions with the talent, scope, scale and footprint to deliver excellence and a wider range of solutions for our clients,” commented Amentum CEO John Heller. “Our combined company will deliver extensive expertise in the government’s highest priority areas of energy, space exploration, intelligence and analytics, and digital modernization. We look forward to the union of our strong teams and a bright future ahead.”

The transaction was approved by the Jacobs board of directors and is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in the second half of fiscal year 2024.

Governance and Management

Upon completion of the deal, John Heller, current CEO of Amentum, will serve as CEO of the combined company and sit on the combined company’s board, and Dr. Steve Arnette, EVP and President of CMS, will serve as COO. Jacobs’ current Executive Chair Steve Demetriou will become Executive Chair of the combined company.

The board of directors of the combined company will be composed of an equal number of directors appointed by Jacobs and Amentum. Members of the combined company’s senior management team will be drawn from both companies and will be announced later as integration planning progresses.

Strategic Rationale of the Combination

• Creates a leading, pure play government technology solutions prime: ~$13 billion in combined revenue[1], with more than 80% from prime contracts serving the full program life cycle for government clients, and a combined talent base of more than 53,000 skilled employees – including more than 27,000 cleared employees.
• Stable revenue base with attractive, diversified portfolio mix: Combines stable base of large government contracts with strong capabilities in growing client priority areas. A large majority of future EBITDA of the combined company is expected to come from higher growth, higher margin intelligence, cyber, energy, digital engineering, and science and technology sectors, with a strong foundation of long-term and large-scale DoD contracts.
• Highly complementary strengths: Amentum brings expertise in engineering solutions, complex program management, and solutions integration to modernize customers’ most important missions. Jacobs’ contributed businesses bring world-class engineering and science capabilities, with unique expertise in sectors such as space, cyber & intelligence, and energy.
• Shared vision and aligned values: Each organization brings an intense focus on the mission and delivery of the highest quality service for their clients. The organizations share common values, including a commitment to safety, inclusion and diversity, and creation of enhanced opportunities for the combined employee base.
• High visibility cost synergies: Management has identified approximately $50-70 million of estimated net cost synergies. Both organizations have track records of effective synergy realization and will work to target additional synergies during integration.
• Compelling financial profile: Approximately $50 billion in combined backlog (3.7x combined revenue), ~$13 billion of combined revenue, and more than $1.1 billion projected 2024 combined adjusted EBITDA^[2], including estimated net cost synergies, representing approximately 8% projected adjusted EBITDA margin for the combined company. Significant growth opportunities exist through both on-contract growth and new contract wins across the combined portfolio.
• Secure balance sheet with strong FCF and attractive deleveraging pathway: Leverage ratio of the combined company is targeted to be approximately 3.8x at close, inclusive of expected run-rate net cost synergies, with plan to reach less than 3x leverage ratio within 24 months of close. Capital expenditures for the combined company approximate 0.3% of revenue.

Advisors

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are serving as financial advisors to Amentum and Cravath, Swaine & Moore LLP is serving as legal advisor. Centerview Partners LLC and Perella Weinberg Partners LP are serving as financial advisors to Jacobs and Wachtell Lipton, Rosen & Katz is serving as legal advisor. Goldman Sachs provided financial advice to the Jacobs Board of Directors.

About Amentum

Amentum is a leader in global engineering, project management and solutions integration, trusted to modernize the most critical missions anywhere in the world. Driven to create a safer, smarter, cleaner world, we innovate as a team of inventive doers passionate about making a difference. Underpinned by a strong culture of ethics, safety and inclusivity, Amentum is fiercely committed to operational excellence and successful execution. Visit us at amentum.com to learn how we solve what’s next.

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Contacts: 
For Amentum:

Chanel Mann
+1 (682) 788-5685

chanel.mann@amentum.com
Follow @Amentum_corp on X

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[1]           Estimated combined revenue of Amentum in FY2023 and Jacobs’ separated business in FY2023 should not be considered indicative of future performance.

[2]           Reconciliation of projected 2024 adjusted EBITDA for the combined company to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict with sufficient certainty all the components required to provide such reconciliation.

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Under the contract, Landmarc will provide facilities management services, rural estate management and operational services on the UK Defence Training Estate, as well as delivering additional works with an estimated value of up to £800m, subject to annual reviews.

“We are thrilled to be awarded this new contract and build on 20 years of outstanding service delivery to ensure that the UK Defence Training Estate delivers safe and sustainable locations to train our Armed Forces,” said Mark Neill, Managing Director at Landmarc. “Every single one of our 1,300 strong team has had a part to play in providing the critical services that enable our Armed Forces to train effectively, deploy on operations and return home safely. We look forward to continuing our strong partnership with DIO and working with its wider industry partners to transform the lived experience of Armed Forces personnel who use the Defence estate to live, work and train.”

The new contract will provide UK and visiting Armed Forces with a safe and secure place to live, work and train, while maintaining and improving the land, buildings and facilities that they use. The contract will also deliver vital services to training troops, including providing them with around four million meals a year and approximately one million bed spaces. It will introduce innovative, more responsive, and flexible services for personnel using the training estate and will be more agile to meet the changing needs of the Armed Forces.

The training estate covers around 1% of land in the UK and plays a crucial role in preparing UK and visiting troops for operations across the globe, including supporting the UK-based training of thousands of Ukrainian volunteer recruits.

The training estate includes training camps, range complexes and field firing areas, as well as Sites of Special Scientific Interest and Special Conservation Areas. Much of the training estate is open to the public and this new contract will help to ensure that these important spaces are well maintained and are kept safe for both the public and the military to use.

“The new contract offers the opportunity to transform the way we manage our training areas. We have a good working relationship with Landmarc and I look forward to continuing our work with them to improve the training estate so that it meets the unique and ever-changing needs of our Armed Forces as well as offering a safe place for the public to visit,” said Brigadier Jonathan Bartholomew, Head DIO Overseas & Training Region.

The initial contract, awarded by the Defence Infrastructure Organization (DIO), is for seven years with the option to extend annually up to a further three years, based on contractor performance. It is due to come into service in December 2023.

About Amentum

Amentum is a leader in global engineering, project management and solutions integration, trusted to modernize the most critical missions anywhere in the world. Driven to create a safer, smarter, cleaner world, we innovate as a team of inventive doers passionate about making a difference. Underpinned by a strong culture of ethics, safety and inclusivity, Amentum is fiercely committed to operational excellence and successful execution. Headquartered in Chantilly, Virginia, we have more than 44,000 employees in 85 countries in all 7 continents. Visit us at amentum.com to learn how we solve what’s next.

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Contacts: 
For Amentum:

Chanel Mann
+1 (682) 788-5685

chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

The post Amentum JV Expands Infrastructure Modernization Solutions in UK appeared first on Amentum.

“Loren’s knowledge of the nuclear industry will enable us to expand in the international nuclear and environmental markets,” said Mark Whitney, President of Amentum’s National Security Group. “This appointment strengthens our international team and enhances our position in a key growth market as we compete for upcoming nuclear and environmental opportunities around the world. He will also carry on our commitment to our existing customers.”

In his new role, Loren will lead the nuclear, security and environment business for government and commercial clients internationally, with an immediate focus in Europe. He will report to Mark Whitney.

Loren is an experienced senior executive with proven success operating high performing businesses, including establishing, building, and transforming engineering-focused organisations for value creation and sustainable growth. He has extensive experience in the delivery of major national and international nuclear, environmental and defence programmes.

Prior to joining Amentum, Loren was the International and Business Winning Director for Cavendish Nuclear in the UK, where he had accountability for business in Japan, Canada, United States, and other international markets. Loren also led Business Winning across the whole of Cavendish Nuclear, significantly increasing their bid success rate during his tenure. He also held responsibility for managing strategic projects and developing ongoing relationships with customers, industry bodies and partners.

Loren previously held positions with Hyde Group, Nuvia, and Westinghouse Electric Company.  He is the Chair of the Northern Nuclear Alliance in the UK – an extensive Membership organisation covering the full supply chain of the nuclear sector – and a board member of the Cheshire and Warrington Local Economic Partnership.

About Amentum

Amentum is a premier global leader in designing, engineering, managing, and modernizing critical systems and programs of national significance across defense, security, intelligence, energy, and environment. Driven to create a safer, smarter, cleaner world, we innovate as a team of inventive doers passionate about making a difference. Underpinned by a strong culture of ethics, safety and inclusivity, Amentum is fiercely committed to operational excellence, mission focus, and successful execution. Headquartered in Germantown, Md., we have more than 36,000 employees in 72 countries in all 7 continents. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

Contacts:
For Amentum:
Keith Wood
+1 (803) 502-5748
keith.wood@amentum.com

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The combination with PAE adds to and enhances Amentum’s industry-leading capabilities, including the areas of synthetic training, sensor-based technologies, intelligence, cyber and IT, spectrum and electronic warfare, secure satellite communication connectivity, space operations, environmental solutions, asset management, and mission support. Additionally, with more than $9 billion of combined revenue over the last 12 months, Amentum’s scale and diversity is further distinguished among leading solution providers for the U.S. government.

“Acquiring PAE is a meaningful step forward in our commitment to being the best partner to our clients,” said John Vollmer, Amentum’s CEO. “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.”

The all-cash transaction for all outstanding shares of common stock of PAE is valued at approximately $1.9 billion, including the assumption of debt and certain fees.

About Amentum

Amentum is a premier global services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. Amentum draws from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., Amentum employs approximately 57,000 people on all seven continents. Visit amentum.com to explore how Amentum delivers excellence for its customers’ most vital missions.

 Contacts: 
For Amentum:

Chanel Mann
+1 (682) 788-5685

chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

The post Amentum Completes Acquisition of PAE appeared first on Amentum.

In his new role, Mathis is responsible for Amentum’s corporate finance activities including financial strategy, business operations, accounting, compliance, tax and treasury.

“Charlie possesses extensive expertise across financial and business operations and understands the complex environment in which government services companies operate,” said John Vollmer, Amentum’s CEO. “His leadership will be critical as we continue to grow into one of the largest providers of critical services to government customers.”

Mathis joins Amentum after retiring from SAIC last year, where he served as CFO since 2016. He previously served as CFO for defense contractors Force Protection, Inc. and EFW, Inc., and commercial IT and cloud company ScanSource, Inc. where he currently serves as a Director.

“I look forward to leading a diverse team of professionals within Amentum’s executive leadership team and finance organization as the company continues its growth trajectory,” Mathis said. “I am particularly excited to explore ways we can create value for the business in 2022 and beyond.”

Mathis earned his B.A. from Wake Forest University and an MBA from the University of Chicago Graduate School of Business. At the beginning of his career, Mathis served in the U.S. Marine Corps as an infantry officer.

About Amentum
Amentum is a premier global technical and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy and environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more than 37,000 people in all 50 states and perform work in 105 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

Contacts:
For Amentum:
Chanel Mann
+1 (682) 788-5685
chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

The post Amentum Appoints Charles A. Mathis as Chief Financial Officer appeared first on Amentum.

In this role, he will be responsible for leading Amentum’s diversity, equity and inclusion vision and strategy by developing and implementing programs and initiatives that advance the company’s business objectives and reinforces its culture.

“Rob brings with him deep expertise in developing and executing strategies that will help us live our values — valuing each person in our organization, enabling them to reach their full potential and ultimately drive the success of our business,” said John Vollmer, Amentum CEO. “His leadership will be critical as we continue our journey to become the employer of choice in our industry.”

Dr. Smith is a dedicated career military officer and public servant with more than 30 years of government and private sector leadership experience. He previously led the Diversity & Inclusion and Talent Acquisition functions for BAE Systems’ Intelligence and Security Sector in McLean, Va. Prior to BAE, Dr. Smith served as the Director of National Recruitment for Customs and Border Protection where he led the planning and direction of the agency’s strategic human capital recruitment programs and related initiatives. Dr. Smith previously served for 28 years on active duty in the U.S. Coast Guard and retired at the rank of captain.

Dr. Smith earned a Ph.D. in Psychology and a Master of Science in Industrial/Organizational Psychology from Capela University, a Master of Science in Instruction & Performance Technology from Boise State University, and a Bachelor of Science in Mass Communications from West Virginia State University. Additionally, he is a 2013 Boys and Girls Club of America Alumni Hall of Fame Inductee and a 2014 West Virginia State University Army R.O.T.C. Hall of Fame Inductee.

About Amentum

Amentum is a premier global technical and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy and environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more than 34,000 people in all 50 states and perform work in 105 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

Contacts: 
For Amentum:

Chanel Mann
+1 (682) 788-5685

chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

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FALLS CHURCH, Va., July 22, 2021 – PAE, a global leader merging technology with advanced business practices, delivering innovative and efficient managed solutions to the U.S. government and its allies, was awarded an indefinite delivery, indefinite quantity contract by Naval Facilities Engineering Systems Command Far East for base operating support services at Marine Corps Air Station Iwakuni, Japan. The single-award contract is currently valued at up to ¥8.18 billion (approximately $74.2 million) if all options are exercised.

PAE Interim President and CEO Charlie Peiffer said PAE has a respected history supporting U.S. projects in Japan, and this award builds on the company’s strategy to expand delivery of innovative solutions in the Asia Pacific Region.

“We’re excited for this opportunity to continue supporting the critical missions of the Marine Corps at Iwakuni,” Peiffer said. “Our specialized expertise and established presence in Japan are ideal for us to deliver the most effective solutions on this contract.”

This is a new contract that has a 12-month base period that may be extended to June 2026 through four one-year options with an additional 60-day demobilization period. On the contract, PAE will provide maintenance and repair of facilities, including family housing, custodial services, grounds maintenance, wastewater operations and maintenance and environmental services.

About Amentum

Amentum is a premier global services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. Amentum draws from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., Amentum employs more than 50,000 people on all seven continents. Visit amentum.com to explore how Amentum delivers excellence for its customers’ most vital missions.

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Contacts:

For Amentum:

Chanel Mann
+1 (682) 788-5685

chanel.mann@amentum.com

Follow @Amentum_corp on Twitter

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The challenge to size-reduce the PFR ILW has been met by a solution that brings project management expertise from Amentum, first-hand in-depth knowledge of the PFR ILW challenge at Dounreay and extensive experience from relevant international and domestic projects. This includes size reduction of the Sodium Cooled Reactor at the Karlsruhe site in Germany, the Modular ILW Encapsulation Plant (MILWEP) across Magnox sites, as well as lessons learned from more than 25 international projects of relevant scope. This solid foundation of knowledge enables us to bring delivery confidence and a value for money solution to DSRL that is based on an effective and proven solution.

“We are very pleased to have been selected to deliver this initial phase of the PFR ILW Size Reduction Facility for DSRL”, said David Batters, Senior Vice President of Amentum in the United Kingdom. “The concept design study will allow our highly capable team to showcase our international expertise and bring forward opportunities to present the best possible concept to our client. Work is already underway, and we continue to be fully committed to the safe decommissioning of Dounreay.”

The contract is tendered under the Dounreay Decommissioning Services & Works Framework, a seven-year framework with expected scope of £400m. The Amentum-led team has brought best athlete in play for this contract, including Westinghouse, NSG Environmental, Abbot Risk Consulting (ARC), DBD, Exyte Hargreaves and AECOM. We work with a dedicated supply team and directly with the Dounreay team to ensure that an integrated approach is undertaken for this important scope of work. Work on the project commenced in October and is scheduled to conclude by September 2021.

About Amentum
Amentum is a premier global technical and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more than 34,000 people in all 50 states and perform work in 105 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

Contact:

US: Keith Wood
+1 (803) 502-5748
keith.wood@amentum.com

Follow @Amentum_corp on Twitter

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“We could not be more proud to be recognized as the top Military Friendly Company for 2021,” said John Vollmer, Amentum’s CEO. “Our focus on the missions of our military customers, the leadership and teamwork of our 11,000 veteran employees, and the contributions of the military spouses at Amentum and the veteran-owned small businesses we partner with make us stronger as a company and drive our success every day. We share many of the same values, including the importance of leadership and teamwork, discipline and dedication to mission success.”

In total the 2021 Military Friendly Company designation was awarded to 69 organizations.
“Military Friendly Companies list represents a growing number of organizations who are taking a holistic approach on engagement, retention and support in the military and service member community,” said Kayla Lopez, Director of Military Partnerships for Military Friendly. “Their dedication, persistence, and evolution in their programs are what sets these companies apart. This holistic approach is what creates scalability.”

Amentum will be showcased along with other 2021 Military Friendly ® Companies in the March issue of G.I. Jobs ® magazine and on MilitaryFriendly.com.

About Amentum
Amentum is a premier global technical and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more than 34,000 people in all 50 states and perform work in 105 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

About Military Friendly®
Military Friendly® is the standard that measures an organization’s commitment, effort and success in creating sustainable and meaningful benefits for the military community. Only about 15 organizations competed for Military Friendly® designation upon its founding in 2003. Today, that number is over 1,500. Military Friendly® ratings are owned and produced by Viqtory, Inc., a service-disabled, veteran-owned small business founded in 2001. They are not affiliated with or endorsed by the U.S. Department of Defense or the federal government. The data-driven Military Friendly® lists and methodology can be found at www.MilitaryFriendly.com. Data calculations are evaluated for completeness and accuracy by Ernst & Young.

About VIQTORY:
Founded in 2001, VIQTORY is a service-disabled, veteran-owned small business (SDVOSB) that connects the military community to civilian employment, educational and entrepreneurial opportunities through its owned asses such as Military Spouse Magazine®, G.I. Jobs ® and Military Friendly ® brands. VIQTORY and its brands are not a part of or endorsed by the U.S. Department of Defense or any federal government entity. Learn more about VIQTORY at www.Viqtory.com.

Contacts:
For Amentum:
Chanel Mann
+1 (682) 788-5685
chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

For Military Friendly®
Joshua Rosen
Military Friendly National Director
Josh.Rosen@militaryfriendly.com

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GERMANTOWN, Md. and  MCLEAN, Va. – Sept. 24, 2020

The combination with DynCorp will accelerate Amentum’s growth, enhance market access and transform the company into one of the largest in the industry, with more than 34,000 employees in more than 30 countries around the world.

“The combination of our two companies will accelerate our growth into key new markets such as aviation support services, contractor logistics support, intelligence solutions, and training,” said John Vollmer, Amentum’s CEO. “We look forward to welcoming DynCorp’s employees to the Amentum family. Our complementary capabilities and cultures will propel Amentum to the top of our market as a leader with differentiated solutions to support our clients’ most challenging missions.”

“This strategic combination of two market leading companies will deliver tremendous value to our customers and increased opportunities for our employees,” said George Krivo, CEO of DynCorp.

The transaction is subject to customary closing conditions and regulatory approvals. The transaction is expected to close in fourth quarter 2020.

RBC Capital Markets, LLC acted as financial advisor to Amentum, Cravath, Swaine & Moore LLP acted as legal counsel, and Covington & Burling LLP acted as regulatory and government contracts counsel. Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC acted as DynCorp’s financial advisors and Schulte Roth & Zabel LLP acted as legal counsel.

About Amentum
Amentum is a premier global technical and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy, and environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more than 20,000 people in 48 states and 28 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

About DynCorp International
DynCorp International is a leading global services provider offering unique, tailored solutions for an ever-changing world. Built on more than seven decades of experience as a trusted partner to commercial, government and military customers, DI provides sophisticated aviation, logistics, training, intelligence and operational solutions wherever we are needed. DynCorp International is headquartered in McLean, Va.

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Contacts:

For Amentum:
Chanel Mann
+1 (682) 788-5685
chanel.mann@amentum.com
Follow @Amentum_corp on Twitter

For DynCorp International:
John Gastright
+1 (571) 230-4522
pr@dyn-intl.com

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