CCA Acquires Correctional Management, Inc.
April 11 2016 - 8:00AM
Corrections Corporation of America (NYSE:CXW) (the
“Company” or “CCA”), America's largest owner of partnership
correctional, detention, and reentry facilities, announced today
that it has closed on the acquisition of 100% of the stock of
Correctional Management, Inc. (CMI), a privately held community
corrections company, along with the real estate used in the
operation of CMI's business from two entities affiliated with CMI,
for approximately $35.0 million, excluding transaction related
expenses. The all-cash transaction closed on April 7, 2016,
and was funded utilizing the Company's revolving credit facility.
CMI has provided community corrections and
non-residential day reporting services since 1984. It
currently operates seven facilities, including six owned and one
leased, constituting a total of 605 beds in Colorado. With a
focus on utilizing evidence-based programs and individualized
treatment plans tailored to clients who have serious substance
abuse problems and histories of criminal conduct, CMI provides
people preparing to return to their communities the opportunity to
end the cycle of addiction and incarceration. CMI provides
these services through multiple contracts with Boulder, Denver and
Arapahoe Counties, as well as the Colorado Department of
Corrections, a longstanding and valued partner of CCA.
"With a commitment to providing high-quality
service for the state of Colorado and its local communities for
more than 30 years, we are excited to have CMI join CCA's expanding
community corrections platform," said Damon Hininger, CCA's
President and Chief Executive Officer. "We are continuing to
pursue additional opportunities to acquire community corrections
providers with strong operating histories that are accretive to our
earnings and align with CCA's commitment to reducing recidivism and
preparing individuals for their successful reentry into
society."
Following the acquisition of CMI, CCA owns or
controls 24 residential reentry facilities with a design capacity
of 4,970 beds located in six states.
About CCA
CCA, a publicly traded real estate investment trust (REIT), is
the nation’s largest owner of partnership correctional, detention,
and residential reentry facilities and one of the largest prison
operators in the United States. We own or control 73
correctional, detention and reentry facilities, with a design
capacity of approximately 75,000 beds, and manage 11 additional
facilities owned by our government partners with a total design
capacity of approximately 14,000 beds, in 20 states and the
District of Columbia. CCA specializes in owning, operating and
managing prisons and other correctional facilities and providing
residential, community reentry and prisoner transportation services
for governmental agencies. In addition to providing
fundamental residential services, our facilities offer a variety of
rehabilitation and educational programs, including basic education,
faith-based services, life skills and employment training and
substance abuse treatment. These services are intended to
help reduce recidivism and to prepare offenders for their
successful reentry into society upon their release.
Forward-Looking Statements
This press release contains statements as to our beliefs and
expectations of the outcome of future events that are
forward-looking statements as defined within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. In particular, whether or not this acquisition
will be accretive or our pursuit of additional acquisitions will
lead to accretive transactions is uncertain and subject to many
variables, some of which we do not control. A list of factors that
could cause operating and financial results to differ are described
in the filings we make from time to time with the Securities and
Exchange Commission.
CCA takes no responsibility for updating the information
contained in this press release following the date hereof to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events or for any changes or
modifications made to this press release or the information
contained herein by any third-parties, including, but not limited
to, any wire or internet services.
Contact:
Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024
Media: Steve Owen – Managing Director, Communications - (615) 263-3107
CoreCivic (NYSE:CXW)
Historical Stock Chart
From Mar 2024 to Apr 2024
CoreCivic (NYSE:CXW)
Historical Stock Chart
From Apr 2023 to Apr 2024