The GEO Group Sells Lawton Correctional Facility for $312 Million, Proceeds to Buy San Diego Facility

The GEO Group has sold its Lawton Correctional Facility in Oklahoma for $312 million, with proceeds to be used for a like-kind exchange to acquire a detention facility in San Diego, California. This aims to reduce the company's total net debt to approximately $1.47 billion. The sale underscores the intrinsic value of GEO's company-owned facilities and strengthens its balance sheet.

The GEO Group, Inc. (NYSE: GEO) announced on July 28, 2025, that it has successfully sold its Lawton Correctional Facility in Lawton, Oklahoma, to the State of Oklahoma for $312 million. This sale, completed on July 25, 2025, also involved the transition of the Lawton Facility's operations to the Oklahoma Department of Corrections [1].

The proceeds from the sale will be used to acquire the 770-bed Western Region Detention Facility in San Diego, California, through a like-kind real estate property exchange, expected to close on July 31, 2025. Additionally, the funds will be used to pay off additional senior secured debt, including the remaining balance of the Term Loan B outstanding under the Company’s recently amended Credit Agreement [1].

These transactions are anticipated to reduce GEO’s total net debt to approximately $1.47 billion, positioning the company to consider potential future capital returns. George C. Zoley, Executive Chairman of GEO, stated, "We believe that the successful sale of our Lawton Facility is representative of the intrinsic value of our Company-owned facilities, which now total approximately 50,000 beds. We believe this important transaction is a significant deleveraging event that further strengthens our balance sheet and represents an important step to position our Company to consider potential future capital returns. Our management team and Board of Directors remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders" [1].

GEO Group, Inc., is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. The company's services include enhanced in-custody rehabilitation and post-release support, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care [1].

The sale of the Lawton Correctional Facility underscores GEO's commitment to financial discipline and strategic capital allocation. As the company continues to focus on deleveraging its balance sheet, investors can expect to see a more stable and potentially rewarding investment environment [1].

References:
[1] https://finance.yahoo.com/news/geo-group-closes-sale-company-105500225.html
[2] https://www.morningstar.com/news/business-wire/20250727157794/the-geo-group-closes-sale-of-company-owned-lawton-correctional-facility-in-oklahoma-for-312-million
[3] https://investors.geogroup.com/news-releases/news-release-details/geo-group-closes-sale-company-owned-lawton-correctional-facility