NASHVILLE, Tenn. - Corrections Corp. of America, one of the largest prison operators in the country, has completed its approximately $36 million acquisition of the privately held Correctional Alternatives Inc.
Corrections Corp. the biggest owner of partnership correction and detention facilities in the U.S., said that the transaction helps broaden its offerings.
"This acquisition enables us to provide a range of solutions from incarceration through release, supporting our belief in helping inmates successfully transition to society, which is important to both our business and our communities," President and CEO Damon Hininger said in a statement on Monday.
Correctional Alternatives is a community corrections company that is currently responsible for about 450 residents and inmates. It specializes in work furloughs, residential re-entry programs and home confinement for San Diego County, the Federal Bureau of Prisons and U.S. Pretrial Services and Probation. It owns a 120-bed facility and controls a 483-bed facility through a long-term lease.
The acquisition is expected to add approximately $14 million to Corrections Corp.'s total annual revenue, excluding transaction related expenses and transitional costs. The buyout is expected to be neutral to its 2013 earnings per share and add about 3 cents per share to its 2014 pro forma earnings per share.