The GEO Group, Inc. (NYSE: GEO) ("GEO") announced today that its United Kingdom subsidiary, GEO U.K. Ltd. ("GEO UK") has signed a definitive agreement (the "definitive agreement") to acquire U.K.-based Recruitment Solutions International ("RSI"). RSI is a privately-held provider of transportation services to The Home Office Nationality and Immigration Directorate.
Under the terms of the definitive agreement, GEO U.K. will purchase RSI for approximately $2.25 million plus transaction related expenses. It is expected that RSI would generate approximately $3.7 million in annual revenues on a standalone basis during 2006. GEO anticipates that the transaction will be completed in the next few weeks.
The acquisition of RSI is expected to be neutral in 2006 and become increasingly accretive in subsequent years as GEO U.K. pursues new business opportunities in the United Kingdom's detainee and prisoner transportation market.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, "We are delighted with our acquisition of RSI, for this important transaction will allow GEO UK Ltd. to continue its expansion into the delivery of a much wider range of services to Government."
The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, Canada, and the United Kingdom. GEO's worldwide operations include 63 correctional and residential treatment facilities with a total design capacity of approximately 53,000 beds.
This press release contains forward-looking statements regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO's ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO's ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO's ability to control operating costs associated with contract start-ups; (4) GEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO's operations without substantial costs; (5) GEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO's ability to obtain future financing on acceptable terms; (7) GEO's ability to sustain company-wide occupancy rates at its facilities; and (8)
Other factors contained in GEO's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.