GEO Group to acquire Cornell Cos. in $685M deal
Shares of Houston’s Cornell Cos. Inc. gained more than one third of their value in pre-market trading Monday morning after GEO Group Inc. announced it will buy the rival correctional facility operator for about $685 million in cash and stock.
The purchase price includes about $300 million in Cornell debt assumption.
The combined company will manage and/or own 97 correctional and detention facilities with a total design capacity of approximately 76,000 beds and 32 behavioral health facilities with a total design capacity of approximately 5,000 beds.
The deal is expected to close in the third quarter.
Boca Raton, Fla.-based GEO’s (NYSE: GEO) expects its purchase of Cornell Cos. (NYSE: CRN) to increase its total annual revenues by approximately $400 million to more than $1.5 billion.
In pre-market trading Cornell Cos.’ Stock was up nearly 37 percent to a new 52-week-high of $25.29.