Oct 21 2009
The GEO Group (NYSE:GEO) (“GEO”) announced today that it has been awarded a contract by U.S. Immigration and Customs Enforcement (“ICE”) for the continued management of the company-owned Northwest Detention Center (the “Center”) located in Tacoma, Washington. The Center houses immigration detainees for ICE. GEO has substantially completed a $50.0 million, company-financed 545-bed expansion of the existing 1,030-bed Center.
The new contract will have an initial term of one year effective October 24, 2009, with four one-year renewal option periods. Under the terms of the new agreement, the contract capacity at the Center will be increased from 1,030 to 1,575 beds, and the transportation responsibilities will be expanded. The new contract is expected to generate approximately $60.0 million in annualized revenues at full occupancy, including the new transportation responsibilities.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We appreciate the confidence placed in our company by ICE with this important contract award. Our Northwest Detention Center, which was recently expanded to 1,575 beds, will continue to play a critical role in helping to meet the need for federal detention bed space in the Pacific Northwest. We look forward to strengthening our public-private partnership with the agency.”
Source: http://www.thegeogroupinc.com/