NASHVILLE, Tenn., June 14, 2016 (GLOBE NEWSWIRE) -- CCA (NYSE:CXW) (the “Company” or “Corrections Corporation of America”), America's largest owner of partnership correctional, detention, and reentry facilities, announced today that it has closed on the acquisition of a residential reentry facility in Long Beach, California from a privately held owner, for approximately $7.7 million, excluding transaction related expenses. The all-cash transaction closed June 10, 2016, and CCA did not assume any debt as part of the transaction.
The residential reentry facility has a capacity of 112 beds and is leased to Community Education Centers, Inc. ("CEC") under a triple net lease agreement that extends through June 2020 and includes one five-year lease extension option. CEC separately contracts with the California Department of Corrections and Rehabilitation to provide rehabilitative and reentry services to residents at the leased facility.
"We are pleased to further expand our portfolio of high quality residential reentry properties with the execution of this transaction," said Damon Hininger, CCA's chief executive officer. "The acquisition of the Long Beach Community Corrections Center fits squarely in line with our return targets for an individual reentry facility, leased to a third party operator. We continue to pursue additional transactions in the reentry market 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 this acquisition, CCA owns or controls 25 residential reentry facilities with a design capacity of 5,082 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 74 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