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Community Education Centers Acquires CiviGenics

In June, 2007, Roseland, New Jersey-based Community Education Centers, Inc, (CEC), the nation’s largest private provider of re-entry and rehabilitative services combined with Marlborough, Massachusetts-based CiviGenics, Inc., the largest provider of in-prison treatment in the country and the nation’s third-largest operator of private prisons. The combined company will have over 3,500 employees, operate 97 prisons, jails and halfway houses in 22 states with around 20,000 people in its programs and prisons and have projected annual revenues of over $200 million.

The buyout was made possible by a $53 million equity investment in CRC by private equity firms LLR Partners, Inc. and Primus Capital Funds. The cash infusion allowed CRC to purchase CiviGenics as a wholly-owned subsidiary.

CiviGenics operates 11 private prisons in Texas alone with over 100 treatment programs in 19 states. It provides treatment and rehabilitative services both in-prison and post-prison. Services provided include substance abuse counseling, life skills and work release. CEC operates halfway houses, six of which are in New Jersey, the largest of which houses 790 people. The combined company will focus on expansion of its halfway houses and rehabilitative efforts while maintaining the current CiviGenics level of prison management services. John Clancy, 59, CEO of CEC cited philosophical and financial reasons for the directed emphasis on rehabilitation.

“Jail management services tend to bring in a higher margin, compared to rehabilitation, but when you run a facility, more capital is at risk,” said Clancy. “Also, our mindset has always been oriented to treating people instead of incarcerating them.”

CEC intends to centralize the finance and human resources departments of the combined company in New Jersey which will likely result in the reduction of administrative staff in Massachusetts. However, there will be no reduction in prison, jail and halfway house staff. This is part of the ongoing consolidation of the private prison industry.

Sources: www.njbizmom,

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