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Jacobs Solutions Inc. has revealed plans to create a new independent company out of its Critical Mission Solutions business. The decision, unanimously approved by the engineering services company’s board of directors, aims to enhance the success of Jacobs and CMS as separate entities by allowing them to pursue individual strategies and operational initiatives tailored to their respective industries.

In his official statement regarding the separation, Jacobs CEO Bob Pragada said the company’s aim is to streamline Jacobs’ business portfolio to be more aligned with key growth sectors around the world.

The benefits from the separation are equally compelling for CMS, which the chief executive described as an industry-leading government services provider with significant scale, differentiated services and deep client relationships.

“As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business,” Pragada added.

According to Jacobs, the separation offers several benefits, including enhanced focus, tailored capital allocation, improved talent retention, aligned investment profiles and proven leadership teams.

The separation is expected to be finalized toward the end of 2024 while the details of CMS’ incorporation will be announced at a later time.