In announcing the acquisition, GEO Group said it expected an additional $30 million in annual revenue from the purchase, along with a four cent increase in its profit per share. The company said the acquisition is being financed with free cash flow and borrowings; GEO completed the acquisition of Just Care in October 2009.
Geo Group, like most other private prison operators, has been plagued with problems at its facilities. Inadequate medical care at a west Texas immigration facility led to riots by prisoners in 2008, for instance. But with profits as the bottom line, instead of the general welfare of prisoners, these kinds of problems are to be expected. Such a history does not bode well for the fate of Geo Group’s most recent acquisition.
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