Morningstar

CoreCivic Sells Two Detention Centers to U.S. Government for $734 Million

Provided by Dow Jones

By Connor Hart 




  Prison operator CoreCivic said it completed the sale of two detention facilities to the U.S. government for $734 million. 



  The company said Wednesday that the sales of its Prairie Correctional Facility in Appleton, Minn., and Midwest Regional Reception Center in Leavenworth, Kan., to the Department of Homeland Security should net it about $522.5 million after taxes and transaction costs. 



  Proceeds will be used for general corporate purposes, CoreCivic said, including potential debt reductions and share repurchases. 



  CoreCivic expects it will continue to manage the facilities under existing management contracts with Immigration and Customs Enforcement. 



  The Prairie Correctional Facility contract is set to expire in August 2031. CoreCivic said Tuesday that it had been awarded a new contract with ICE to utilize the 1,600-bed facility, which had sat idle since 2010. 



  The Midwest Regional Reception Center contract is set to expire in September 2027. 



  CoreCivic last month completed the sale of two detention facilities in California to the U.S. government for $1.5 billion. The deals come after ICE said earlier this year that it plans to spend $38.3 billion on new detention facilities to meet the agency's growing demand for bedspace and to streamline the removal process for people living in the country illegally. 



  Crackdowns on immigrants living in the U.S. unlawfully by ICE have boosted prison operators' earnings and made America's private prison companies among the best-performing stocks this year. 





  Write to Connor Hart at connor.hart@wsj.com 





  (END) Dow Jones Newswires



  August 05, 2026 11:41 ET (15:41 GMT)


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