Dive Brief:
- Jacobs Engineering Group will implement a new holding company structure on Aug. 29, according to a company press release.
- The new parent company, named Jacobs Solutions, more closely aligns with the Dallas-based contractor's intelligence, infrastructure, cybersecurity and space portfolio and will replace Jacobs Engineering Group as the public company listed on the New York Stock Exchange.
- Jacobs’ current stockholders will automatically become stockholders of Jacobs Solutions on a one-for-one basis, with the same number of shares and same ownership percentage of Jacobs’ common stock that they held immediately prior to the holding company transaction.
Dive Insight:
The move is the latest part of a deeper strategy change at the company.
CEO Steve Demetriou identified last year global infrastructure modernization, climate response and the digitization of the industry as three multi-decade growth opportunities for the firm.
For example, Jacobs acquired engineering firm CH2M Hill to expand its environmental solutions and water footprint in 2017, and sold its oil and gas, mining and chemicals business to Australia’s WorleyParsons a year later in 2018.
The stock will continue to trade on the NYSE under the existing ticker symbol “J.”
The internal transaction is intended to be tax-free for Jacobs and its stockholders. No materials operational or financial impacts are expected, and no stockholder vote is required, according to the release.
Other architecture, engineering and construction firms, like AECOM and Fluor, also are pushing into sustainability. Those firms reported last year increasing interest in their environmental services.
