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Released November 22, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Jacobs Solutions Incorporated (NYSE:J) (Dallas, Texas) plans to strengthen its role in contracted government services by spinning off its related businesses and merging them with Amentum Services Incorporated (Chantilly, Virginia), a rival contractor in the sector. Announcing its results for fiscal-year 2023, in which revenues grew 11% to $4.29 billion, Jacobs said the deal will give it a broader role in industries critical to the global economy. Industrial Info is tracking more than $150 billion worth of projects worldwide featuring Jacobs' services, including more than $101 billion worth in the U.S. and Canada. The development of semiconductors and related devices accounts for nearly 40% of the global total.
Click on the image at right for a graph detailing the top 10 parent companies for U.S. and Canadian projects involving Jacobs' services.
The new, publicly traded company formed from the merger will include all of Amentum and Jacobs' Critical Mission Solutions (CMS) and Cyber & Intelligence government-service businesses. CMS is focused on cybersecurity, data analytics and software services for civilian and government clients in sectors ranging from national security to aerospace and nuclear waste management. Jacobs first announced plans in May to separate its CMS business to create two separate companies; Jacobs and its shareholders will own between 58.5% and 63% of the combined company upon completion of the deal, expected in the second half of fiscal 2024.
In 2021, Bloomberg ranked Amentum as the second-largest government services contractor (when not including equipment producers) in the U.S. government-contracting market. Currently, Amentum is serving as general contractor for General Dynamics Corporation's (NYSE:GD) $850 million expansion of a submarine and shipyard-manufacturing plant in Groton, Connecticut, which started construction in October 2019. As part of a 10-year, $1.7 billion companywide plan from General Dynamics, the project will expand the 400,000-square-foot facility by about 50% with a new assembly building and floating dry dock, to facilitate development of the Columbia-class nuclear-powered, ballistic-missile submarine.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more from a detailed project report.
Like Jacobs, Amentum plays a significant role in the Pharmaceutical & Biotech Industry, where it is serving as a contractor on Pfizer Incorporated's (NYSE:PFE) (New York, New York) $70 million in upgrades at a biosafety laboratory for infectious diseases in Pearl River, New York. Amentum has a long-term service agreement in place to support Pfizer's efforts to improve its research and development of vaccines for SARS, COVID-19 and other diseases. The renovation of the Pearl River facility started in the spring of 2022 and is set to wrap up in the first quarter of 2024. Subscribers to Industrial Info's GMI Pharma & Biotech Project Database can learn more from a detailed project report.
"By separating CMS and associated Cyber & Intelligence Solutions, Jacobs will streamline our business portfolio and transform into a more focused, higher-margin company more closely aligned with key global mega trends," said Bob Pragada, the chief executive officer of Jacobs, in a press release announcing the agreement. "I am confident the CMS and Cyber & Intelligence Solutions teams are poised for continued success in their new chapter as part of a more focused, independent public company that will be a leading player in the critical mission government services space."
Executives at Jacobs say the new company will boast "$13 billion in combined revenue, with more than 80% from prime contracts serving the full program life cycle for government clients." They also noted that, when excluding the businesses set to be separated, Jacobs generated about $10.9 billion in revenue in fiscal year 2023.
Jacobs' non-government clients include Samsung Group (Seoul, South Korea), which began construction in the spring of 2022 on a $10 billion semiconductor chip-manufacturing plant in Taylor, Texas. It is the first phase of a larger complex that Samsung estimates will require more than $25 billion of investment and cover 6 million square feet. Samsung expects to produce advanced logic chips to be used in applications such as automobiles, artificial intelligence and 5G devices at the plant, the first phase of which is set to finish construction next spring. Subscribers can read a detailed plant profile and project report on Phase I and click here for a full list of projects considered or underway at the site.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Jacobs worldwide, and click here for a full list of reports for projects in the U.S. and Canada.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent companies for U.S. and Canadian projects involving Jacobs' services.The new, publicly traded company formed from the merger will include all of Amentum and Jacobs' Critical Mission Solutions (CMS) and Cyber & Intelligence government-service businesses. CMS is focused on cybersecurity, data analytics and software services for civilian and government clients in sectors ranging from national security to aerospace and nuclear waste management. Jacobs first announced plans in May to separate its CMS business to create two separate companies; Jacobs and its shareholders will own between 58.5% and 63% of the combined company upon completion of the deal, expected in the second half of fiscal 2024.
In 2021, Bloomberg ranked Amentum as the second-largest government services contractor (when not including equipment producers) in the U.S. government-contracting market. Currently, Amentum is serving as general contractor for General Dynamics Corporation's (NYSE:GD) $850 million expansion of a submarine and shipyard-manufacturing plant in Groton, Connecticut, which started construction in October 2019. As part of a 10-year, $1.7 billion companywide plan from General Dynamics, the project will expand the 400,000-square-foot facility by about 50% with a new assembly building and floating dry dock, to facilitate development of the Columbia-class nuclear-powered, ballistic-missile submarine.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more from a detailed project report.
Like Jacobs, Amentum plays a significant role in the Pharmaceutical & Biotech Industry, where it is serving as a contractor on Pfizer Incorporated's (NYSE:PFE) (New York, New York) $70 million in upgrades at a biosafety laboratory for infectious diseases in Pearl River, New York. Amentum has a long-term service agreement in place to support Pfizer's efforts to improve its research and development of vaccines for SARS, COVID-19 and other diseases. The renovation of the Pearl River facility started in the spring of 2022 and is set to wrap up in the first quarter of 2024. Subscribers to Industrial Info's GMI Pharma & Biotech Project Database can learn more from a detailed project report.
"By separating CMS and associated Cyber & Intelligence Solutions, Jacobs will streamline our business portfolio and transform into a more focused, higher-margin company more closely aligned with key global mega trends," said Bob Pragada, the chief executive officer of Jacobs, in a press release announcing the agreement. "I am confident the CMS and Cyber & Intelligence Solutions teams are poised for continued success in their new chapter as part of a more focused, independent public company that will be a leading player in the critical mission government services space."
Executives at Jacobs say the new company will boast "$13 billion in combined revenue, with more than 80% from prime contracts serving the full program life cycle for government clients." They also noted that, when excluding the businesses set to be separated, Jacobs generated about $10.9 billion in revenue in fiscal year 2023.
Jacobs' non-government clients include Samsung Group (Seoul, South Korea), which began construction in the spring of 2022 on a $10 billion semiconductor chip-manufacturing plant in Taylor, Texas. It is the first phase of a larger complex that Samsung estimates will require more than $25 billion of investment and cover 6 million square feet. Samsung expects to produce advanced logic chips to be used in applications such as automobiles, artificial intelligence and 5G devices at the plant, the first phase of which is set to finish construction next spring. Subscribers can read a detailed plant profile and project report on Phase I and click here for a full list of projects considered or underway at the site.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Jacobs worldwide, and click here for a full list of reports for projects in the U.S. and Canada.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
