DivestmentAug 5, 2026, 04:16 PM
CoreCivic Sells Two Detention Facilities for $734M Gross
AI Summary
CoreCivic, Inc. announced the sale of its 1,033-bed Midwest Regional Reception Center and 1,600-bed Prairie Correctional Facility to the Department of Homeland Security for an aggregate gross sales price of $734.0 million. After accounting for taxes and transaction costs, the company expects net proceeds of approximately $522.5 million, which it plans to use for general corporate purposes, including debt reduction and common stock repurchases. CoreCivic anticipates continuing to manage both facilities for U.S. Immigration & Customs Enforcement (ICE) and is in preliminary discussions for potential additional facility sales.
Key Highlights
- CoreCivic sold its 1,033-bed Midwest Regional Reception Center for $238.4 million.
- The 1,600-bed Prairie Correctional Facility was sold for $495.6 million.
- Aggregate gross sales price for both facilities totaled $734.0 million.
- Anticipated net proceeds are $522.5 million, after $182.2 million in taxes and transaction costs.
- Net proceeds may be used for general corporate purposes, including debt reduction and stock repurchases.
- CoreCivic expects to continue managing both facilities under existing contracts with ICE.
- Discussions are underway with ICE for potential acquisition of additional detention facilities.
Price Impact
More from CXW