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The GEO Group Announces It Has Entered Into a Purchase Agreement to Acquire the 770-Bed Western Region Detention Facility in San Diego, California for $60 Million

1. GEO Group plans to buy the San Diego Facility for $60 million. 2. This acquisition will transition from leasing to ownership, saving costs.

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FAQ

Why Bullish?

Acquiring the San Diego Facility can reduce annual lease costs, enhancing GEO's profitability. Historical acquisitions in the same sector have often led to improved margins and investor confidence.

How important is it?

This strategic M&A could significantly enhance GEO’s operational capabilities and overall revenue generation potential.

Why Long Term?

The purchase will yield long-term savings and operational efficiencies after the acquisition, affecting GEO’s financials positively for years.

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BOCA RATON, Fla.--(BUSINESS WIRE)--The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”) announced today that it has entered into a purchase agreement with SDCC Middle Block, LLC (the “Seller”), an affiliate of Holland Partners Group, to acquire the 770-bed Western Region Detention Facility located in San Diego, California (the “San Diego Facility”) for $60 million. GEO currently leases the San Diego Facility for approximately $5.1 million annually under a lease agreement that expires on Mar.

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