GEO Group said it completed the sale of three immigration detention facilities in Adelanto, California, to the U.S. government for an aggregate gross price of $950M. The facilities comprise the 1,280-bed Adelanto West ICE Processing Center, the 660-bed Adelanto East ICE Processing Center, and the 704-bed Desert View Annex. After taxes, transaction fees, and expenses, GEO expects to receive approximately $705M in net proceeds. GEO will continue providing support services at all three facilities under its existing contract with U.S. Immigration and Customs Enforcement, which runs through Dec. 19, 2034, including a five-year option period. The company plans to use the proceeds, along with operating cash flow, to reduce debt, repurchase shares, and for other general corporate purposes, and its board increased its share repurchase authorization by $750M to $1.25B, effective through Dec. 31, 2029. GEO shares rose 4.7% premarket.
Geo Group IncGEO completed a $950M sale of three Adelanto ICE facilities and raised its buyback authorization to $1.25B, using proceeds to cut debt and repurchase shares.
