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BRENTWOOD, Tenn. - CoreCivic, Inc. (NYSE: CXW), a $2.38 billion market cap correctional facilities operator with nearly $2 billion in annual revenue, announced Tuesday it has entered into a definitive agreement to acquire the Farmville Detention Center in Virginia for $67 million, expanding its immigration detention operations.
The 736-bed facility, constructed in 2010, provides civil detention services to adult male noncitizens through an agreement between Prince Edward County and U.S. Immigration & Customs Enforcement (ICE) that expires in March 2029.
CoreCivic plans to fund the acquisition with cash on hand and its revolving bank credit facility. The transaction is expected to close on July 1, 2025, and generate approximately $40 million in annual incremental revenue. According to InvestingPro, the company maintains strong financial health with liquid assets exceeding short-term obligations and a perfect Piotroski Score of 9.
The company will acquire 100% of the membership interests in entities that own the facility, which currently employs more than 200 people who will join CoreCivic’s workforce.
"We are pleased to expand our immigration solutions with this critical location, which ICE has used for many years," said Damon T. Hininger, CoreCivic’s Chief Executive Officer, in a press release statement.
The acquisition remains subject to satisfaction of customary closing conditions.
CoreCivic describes itself as the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. The company’s stock has delivered an impressive 50.71% return over the past year. Discover more insights about CXW and 1,400+ other stocks with comprehensive Pro Research Reports, available exclusively on InvestingPro.
In other recent news, CoreCivic Inc. reported a strong performance for the first quarter of 2025, exceeding analyst expectations with an earnings per share (EPS) of $0.23, surpassing the projected $0.12. The company also reported revenue of $488.6 million, exceeding the anticipated $477.89 million. CoreCivic has revised its full-year 2025 guidance upwards, with projected diluted EPS now ranging between $0.83 and $0.92. The company anticipates funds from operations (FFO) per share to be between $1.72 and $1.82, and EBITDA to range from $331 million to $339 million. Facility utilization improved to 77%, reflecting increased demand for CoreCivic’s services. Additionally, CoreCivic has been actively expanding its operations, including the reactivation of immigration processing centers and the expansion of transportation fleets. Analysts from firms like NOBLE Capital have shown interest in CoreCivic’s operational strategies, particularly the company’s use of letter contracts to secure facilities for future needs.
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