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| CCA (CXW) Closes ~$157.5M Acquisition of Avalon Correctional Services |
| By streetinsider.com |
| Published: 10/29/2015 |
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CCA (NYSE: CXW) that it has closed on the acquisition of 100% of the stock of Avalon Correctional Services, Inc. ("Avalon"), a privately held community corrections company, along with a facility operated by Avalon, and has entered into an agreement to purchase an additional facility operated by Avalon that is expected to close later in the fourth quarter of 2015. The aggregate purchase price of $157.5 million, excluding transaction-related expenses, includes two earn-outs, including one for $2.0 million based on the achievement of certain utilization milestones over the next 12 months, and another for $5.5 million based on the completion of and transition to a newly constructed facility that will deliver the contracted services currently provided at the Dallas Transitional Center. CCA currently expects both earn-outs to be achieved. The completed transactions were funded utilizing cash from the Company’s revolving credit facility. Founded in 1985, Avalon provides high-quality residential reintegration programming designed to help residents return to their communities with better life management skills, long term employment opportunities and permanent housing. Avalon and CCA have strong geographic and partner overlap, with Avalon operating seven facilities in Texas, three facilities in Oklahoma, and one facility in Wyoming, and common partners including the Texas Department of Criminal Justice, the Oklahoma Department of Corrections, and the Federal Bureau of Prisons. Read More. |
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