CCA deal boosts investment in half-way houses

Source: Getahn Ward, The Tennessean, October 29, 2015

Corrections Corporation of America now also touts itself as the largest domestic owner of community corrections beds after buying Oklahoma-based halfway house operator Avalon Correctional Services on Thursday. With that $157.5 million deal, CCA now operates 17 re-entry facilities totaling 4,365 beds. For Nashville-based CCA, the push into the residential reintegration market is aimed in part at expanding relationships with existing clients such as the federal Bureau of Prisons. On any given day, that agency has roughly 9,000 inmates in re-entry facilities nationwide and has been seeking additional funding to expand that program. … The $157.5 million price includes $7.5 million in earn-outs incentives. CCA expects the acquisition to increase its annual revenues by up to $40 million.