Under the buyout agreement, GEO will assume management of CSC's 15 adult correctional facilities with a total capacity of 7,500 beds. In a related transaction, CSC CEO James Slattery agreed to buy back the company's juvenile services division, Youth Services International (YSI), for $3.75 million and will continue to operate YSI's 17 juvenile facilities with a total of 1,300 beds.
GEO's purchase of CSC was contingent on CSC's settlement of a $38.8 million jury verdict against the company resulting from the 2001 death of Bryan Dale Alexander, an 18-year-old prisoner at a CSC-operated boot camp in Mansfield, Texas. Alexander died of a rare penicillin-resistant type of pneumonia after being denied timely medical care [see PLN, Feb. 2004]. The settlement terms were confidential; however, CSC reportedly contributed $2.7 million toward the total settlement amount with the balance being paid by the company's insurers.
The CSC buyout is merely the latest manifestation of a trend toward consolidation in the private prison industry, an inhumane industry whose motto might be Companies Love Misery." GEO Group Corp., formerly known as Wackenhut Corrections, and Corrections Corporation of America are the dominant private prison companies in the U.S. GEO's acquisition of CSC increases the company's operations to a combined total of 55 facilities with approximately 47,465 beds.
Sources: Palm Beach Post, www.newcoast.com
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