On April the 6th, the prison oriented real estate investment trust, The GEO Group (NYSE: GEO), announced the closing of its acquisition of Community Education Centers. CEC is a leading provider of rehabilitative services. The company offers their services in reentry, as well as in prison. Community Education Centers offers management services to county, state and federal correctional and detention facilities. GEO acquired the company for $360 million in an all cash transaction. CEC will be integrated into GEO’s existing business structure.
CEC was founded in 1996 and now owns and/or manages more than 12,000 beds throughout the nation. Of those 12,000 beds, a little over 7,000 are community reentry beds. CEC offers evidence-based rehabilitation programs to more than 30 government run facilities. Revenue generated by Community Education Centers mainly derives from contracts with statement governments with a smaller quantity coming from arrangements with local jurisdictions.
After the acquisition, GEO will now own and/or manage 142 facilities for a total of 99,000 beds. Of those beds, more than 10,000 are community reentry beds. The company also has a workforce of approximately 23,500 employees. GEO expects the acquisition to increase their annualized revenues on average by $250 million. Additional details about the CEC acquisition can be found by visiting GEO’s latest press release.