Amentum Holdings agreed to acquire DynCorp International in a deal that would broaden its defense services business into aviation and logistics support.
Terms of the pending transaction, which is slated to close in the fourth quarter of 2020 subject to regulatory approvals, were not disclosed.
Amentum is acquiring DynCorp from the investment firm Cerberus Capital Management, which acquired the company for $1.5 billion in 2010. At the time, DynCorp’s annual sales were about $3.5 billion and its two largest customers were the U.S. Defense and State Departments. A company spokesman told Defense Daily that the Defense and State Departments remain DynCorp’s two largest customers followed by other federal, state and local government agencies.
Amentum’s estimated annual sales for its fiscal year 2020 are about $4.3 billion, with roughly 60 percent in defense, 20 percent energy, 16 percent with other federal agencies and international customers, and 4 percent commercial, a company spokeswoman said.
Amentum said the combination with DynCorp will create a mission critical support services company with more than $6 billion in sales over the past year and more than 34,000 employees.
Amentum, is the former AECOM Management Services.
“The combination of our two companies will accelerate our growth into key new markets such as aviation and support services, contractor logistics support, intelligence solutions, and training,” John Volmer Amentum’s CEO, said in a statement. “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.”
DynCorp provides aviation maintenance and sustainment, training and fleet support, logistics, base operations support, asset management, maintenance, repair and overhaul, intelligence training and other services to its customers.
The Amentum spokeswoman said that DynCorp is a market leader in aviation field maintenance and Amentum in ground maintenance. “Now we’ll be able to provide maintenance services across our customers’ portfolios,” she said.
DynCorp’s financial advisers on the deal are Citigroup Global Markets and Morgan Stanley & Co.
This story first appeared in Weapons Complex Morning Briefing affiliate publication, Defense Daily.