GEO closes acquisition of CentraCore Properties Trust

By Jennifer Chiou

New York, Jan. 24 - The GEO Group, Inc. announced the closing of its previously announced acquisition of CentraCore Properties Trust.

GEO paid $32.58 per CentraCore common share, including $0.5826 per share in accrued dividends.

The aggregate purchase price was $427.6 million, inclusive of the repayment of about $40 million of CentraCore debt and about $20 million in transaction related fees and expenses.

GEO added that it financed the acquisition through $365 million in new term loan borrowings under an amended senior secured credit facility and $62.6 million of cash on hand.

"The closing of this important acquisition allows our company to ensure the long-term ownership, control, and utilization of these facilities, while reducing our exposure to escalating use costs in the future. We can now move forward toward enhancing the value of these important new company assets," GEO chairman and chief executive officer George C. Zoley said in a news release.

Lehman Brothers was GEO's financial adviser.

GEO is a Boca Raton, Fla., provider of correctional and mental health services. CentraCore is a Palm Beach Gardens, Fla., correctional real estate investment trust.

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