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GEO Group closes $360M purchase of Community Education Centers

Published 04/06/2017, 08:01 AM
© Reuters.  GEO Group closes $360M purchase of Community Education Centers
GEO
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  • The GEO Group (NYSE:GEO) continues to diversify its operations with the purchase of CEC for $360M in cash.
  • Founded in 1996, CEC owns and/or manages more than 12K beds, including more than 7K community reentry beds. More than 70% of company revenue is generated from contracts with state governments, and more than 20% from contracts with local jurisdictions.
  • The deal is expected to boost GEO revenues by about $250M; net synergies of about $5M are hoped for over the next 9-12 months. The purchase is expected to be 9-11% accretive to adjusted EBITDA beginning in 2018.


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