SAIC [NYSE:SAIC], a government and information technology services company, is working with financial advisor Jefferies on the sale of its logistics and supply chain business, said two sources familiar with the matter.

This news service reported last month that SAIC had hired a financial advisor to explore a divest of the business. The company recently collected initial bids for the segment, the two sources said.

The Reston, Virginia-based company's logistics and supply chain business generates around USD 50m-USD 60m of EBITDA, as reported.

Private equity firms and strategics are showing interest, the two sources said. The business could be a fit for a PE-backed government services company such as Amentum, which is backed by Lindsay Goldberg and American Securities, as reported.

SAIC's logistics and supply chain business is a provider of supply chain management and logistics services to the military.

In January 2022, SAIC received a USD 95m bridge contract from the Defense Logistics Agency to extend the company’s facilities maintenance, repair and operations support to military branches. In March 2020, the company was awarded a USD 950m Federal Supply Group-80 (FSG-80) Tailored Logistics Support Program contract from the Defense Logistics Agency. Under that contract, SAIC took over supply chain management for the FSG-80 commodity, which includes paints, preservation and sealing compounds, and adhesives.

SAIC has a USD 5.52bn market capitalization.

SAIC declined to comment. Jefferies did not return requests for comment.