GEO Group Inc. to Acquire San Diego Detention Facility for $60 Million

In a significant move, The GEO Group, Inc., a leading operator of private correctional facilities, has announced its acquisition of the 770-bed Western Region Detention Facility in San Diego, California. The purchase agreement, valued at $60 million, was entered into with SDCC Middle Block, LLC, an affiliate of Holland Partners Group. This acquisition is expected to close on July 31, 2025, contingent upon the satisfaction of customary closing conditions.

The GEO Group, Inc., listed on the New York Stock Exchange under the ticker symbol GEO, operates primarily in the United States but also has facilities in Australia, Canada, New Zealand, and South Africa. The company is known for offering educational programs, vocational training, and rehabilitation therapy services within its correctional facilities.

As of June 30, 2025, GEO Group’s stock closed at $24.49, with a market capitalization of approximately $3.31 billion. The company’s 52-week high was $36.46, reached on January 20, 2025, while the 52-week low was $11.75, recorded on September 10, 2024. The price-to-earnings ratio stood at 33.3008.

The San Diego Facility, which GEO currently leases for about $5.1 million annually, is set to become a property owned by the company. The lease agreement is due to expire on March 31, 2029. GEO has a contract with the U.S. Marshals Service for the exclusive use of the facility, generating approximately $57 million in annualized revenues.

The acquisition is expected to be funded as a like-kind real estate property exchange, utilizing proceeds from the previously announced sale of the GEO-owned Lawton Correctional Facility in Oklahoma. This strategic move aligns with GEO’s ongoing efforts to expand its portfolio of correctional facilities and enhance its operational capabilities.

For more information about The GEO Group, Inc., visit their website at www.geogroup.com .