DivestmentAug 5, 2026, 08:05 AM
CoreCivic Sells 2 Facilities to US Govt for $734M; Net Proceeds $522.5M
AI Summary
CoreCivic, Inc. announced the completion of the sale of its Prairie Correctional Facility and Midwest Regional Reception Center to the U.S. government for an aggregate gross sales price of $734.0 million. After taxes and transaction costs, the company anticipates net proceeds of approximately $522.5 million, which it plans to use for general corporate purposes, including debt reduction and common stock repurchases. CoreCivic expects to continue managing these facilities under existing contracts with ICE, and is also in preliminary discussions with ICE for potential additional facility sales.
Key Highlights
- Completed sale of Prairie Correctional Facility and Midwest Regional Reception Center.
- Aggregate gross sales price of $734.0 million to the U.S. government.
- Prairie Correctional Facility sold for $495.6 million.
- Midwest Regional Reception Center sold for $238.4 million.
- Anticipated net proceeds of $522.5 million after $182.2 million in taxes.
- Net proceeds to be used for debt reduction and common stock repurchase.
- Company will own or control 61 facilities with 67,000 beds post-sale.
- Preliminary discussions ongoing for potential additional facility sales to ICE.
Price Impact
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