CoreCivic to acquire Farmville Detention Center for $67M

CoreCivic (CXW) announced that it has entered into a definitive agreement to acquire the Farmville Detention Center, a 736-bed facility constructed in 2010 and located in Farmville, Virginia. The transaction is expected to be consummated through the acquisition of 100% of the membership interests in entities that own the facility. Farmville Detention Center provides transportation, care, and civil detention services to adult male noncitizens through an Intergovernmental Service Agreement between Prince Edward County, Virginia and U.S. Immigration & Customs Enforcement, which expires in March 2029. The total purchase price, amounting to $67M, is expected to be funded with cash on hand and borrowing capacity under CoreCivic’s revolving bank credit facility. The acquisition, which is subject to the satisfaction of customary closing conditions, is expected to close effective July 1 and result in total annual incremental revenue of approximately $40M.