GEO Group completes $950 million government facility sale
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- The GEO Group completed the sale of three California processing centers to the federal government for $950 million.
- The company expects $705 million in net proceeds and expanded its share repurchase authorization to $1.25 billion.
- The business stated it will use the capital to reduce corporate debt while continuing to operate the sold facilities.
The GEO Group (NYSE:GEO) completed the $950 million sale of three California processing centers to the Department of Homeland Security.
The company anticipates receiving approximately $705 million in net proceeds from the transaction after accounting for taxes and related expenses.
"We are pleased with the completion of these important asset sales to the U.S. federal government, and we look forward to continuing to provide high-quality secure support services under our existing long-term contracts with ICE," said GEO Group Chairman, Chief Executive Officer and Founder George C. Zoley.
The operator expects to continue providing support services at the sold facilities under an existing contract effective through December 2034.
The business stated it expects to allocate the generated net proceeds alongside operating cashflow to reduce corporate debt and fund equity buybacks.
The company's board of directors authorized a $750 million increase to the share repurchase program to reach a total capacity of $1.25 billion through December 2029.
