CCA Acquires Correctional Alternatives for $36M

CCA

(the "Company" or "Corrections Corporation of America"), America's largest owner of partnership correctional and detention facilities, announced today that it has closed on the acquisition of Correctional Alternatives, Inc. (CAI), a privately held community corrections company, for approximately $36 million, excluding transaction related expenses. The all-cash transaction closed July 31, 2013 and CCA will not assume any debt as part of the transaction. Founded in 1987, CAI provides cost-effective solutions for housing and rehabilitation through community corrections. CAI is currently responsible for approximately 450 residents and inmates concentrating on community corrections and specializing in work furloughs, residential reentry programs and home confinement for San Diego County, the Federal Bureau of Prisons (BOP) and United States Pretrial Services and Probation. CAI owns a 120-bed facility and controls a 483-bed facility through a long-term lease. CAI has contracted with the County of San Diego since 1995 and CCA looks forward to continuing to serve the Probation and Sheriff Department's needs. Additionally, CAI has partnered with the BOP, a long and valued partner of CCA, since 1990. "CCA has made a strategic investment in a complementary business that broadens the scope of solutions we provide. This acquisition enables us to provide a range of solutions from incarceration through release, supporting our belief in helping inmates successfully transition to society, which is important to both our business and our communities," stated Damon Hininger, president and CEO of CCA. Hininger continued, "CAI's expertise within the community corrections market, combined with the knowledge, experience and financial resources of CCA, results in an acquisition that aligns well with our existing business model and customer base. Further, the long-standing contracts and difficult to replace infrastructure assets we obtain through this acquisition aligns well with our strategy of providing real estate to existing and potential government partners. Through this strategic acquisition, we believe we can grow and expand upon the community corrections business that CAI has developed, primarily with other counties in California as they seek solutions to the challenges of realignment on a long-term basis, as well as with the BOP."