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GEO Group closes purchase of Community Education Centers

The GEO Group, a private prison company, has finalized the purchase of Community Education Centers, reports Seeking Alpha.

As reported earlier, GEO Group spent $360 million in an all-cash transaction to purchase Community Education Centers (CEC), another for-profit prison company that owns or manages over 12,000 beds in jails and detention centers. CEC operated 8 different facilities in Texas, where there have been wrongful deaths, contraband in jails, and breakouts from their facilities.

 

GEO Group, one of the largest private prison companies in the United States, did not purchase CEC to revamp or improve the facilities however. Facilities operated by GEO Group have their own history of mistreatment, including sexual assault, prisoner suicide attempts, and smuggling drugs into the facilities. GEO Group is expecting a revenue boost of $250 million.

This isn't the first time that GEO has bought out a competitor. In 2010, they bought Houston-based Cornell Companies for $374 million. Then in 2015, GEO purchased a smaller private prison company, LCS Corrections, for another $350 million. These purchases, along with the recent purchase of CEC, give GEO a huge hold on prisons in Texas.

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