The GEO Group, Inc. (NYSE: GEO) has completed the sale of three detention facilities in Adelanto, California, to the United States Department of Homeland Security. The transaction involves the Adelanto West ICE Processing Center (1,280 beds), the Adelanto East ICE Processing Center (660 beds), and the Desert View Annex (704 beds). The aggregate gross sales price for the assets is $950 million.
The company anticipates receiving approximately $705 million in net proceeds after accounting for federal and state taxes, as well as transaction fees and expenses. GEO intends to utilize these funds, alongside cash flow from operations, to reduce its debt and repurchase shares of its common stock for general corporate purposes.
Despite the sale of the facilities, GEO will continue to provide support services under its existing contract with U.S. Immigration and Customs Enforcement (ICE). The contract, which has a full term effective through December 19, 2034, includes a five-year option period. The company noted that ICE retains the ability to terminate the contract for non-appropriation of funds or for convenience.
In related news, GEO’s Board of Directors has increased the company’s share repurchase authorization by $750 million, bringing the total authorization to $1.25 billion. This authorization is effective through December 31, 2029. The company also stated that it remains in active discussions regarding the potential sale of additional company-owned facilities to ICE, though no definitive agreements or timelines have been established for these potential transactions.
