NASHVILLE, Tenn., April 11, 2016 (GLOBE NEWSWIRE) -- 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.
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.
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
Source:Corrections Corporation of America