The GEO Group Announces $70 Million Investment in Expanding ICE Services Capabilities and New Corporate Reorganization
16 Décembre 2024 - 10:15PM
Business Wire
The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”)
announced today a $70 million investment in capital expenditures to
strengthen the Company’s capabilities to deliver expanded detention
capacity, secure transportation, and electronic monitoring services
to U.S. Immigration and Customs Enforcement (“ICE”). GEO is
currently the largest service provider to ICE, currently providing
approximately 21,000 detention beds (with a present census of
14,000) at 16 ICE Processing Centers with the ability to expand to
a minimum of 32,000 beds at 23 facilities. GEO also presently
provides electronic monitoring and case management services for
approximately 185,000 participants under the Intensive Supervision
Appearance Program, as well as secure ground transportation and air
operations support services. With the objective of offsetting the
$70 million investment in capital expenditures and further reducing
debt, GEO intends to pursue the possible sale of several
underperforming company-owned state correctional facilities.
In addition, GEO also announced several senior management
changes. GEO’s Chief Executive Officer, Brian Evans, has given GEO
notice of his retirement to pursue other opportunities, effective
December 31, 2024. J. David Donahue will begin serving as the new
Chief Executive Officer, effective January 1, 2025. Mr. Donahue has
more than 40 years of experience in corrections and detention,
having served in senior executive roles overseeing operational
planning, facility activations, and managing operational teams. He
joined GEO as the Eastern Region Vice President in 2009, after a
distinguished career in corrections with the Federal Bureau of
Prisons, Kentucky, and Indiana, where he served as Corrections
Commissioner from 2005 to 2008. He also served as the Vice
President of the American Correctional Association (“ACA”) and is
an ACA-Certified Corrections Executive. During his tenure with GEO,
Mr. Donahue was promoted to Senior Vice President and President of
GEO Secure Services in 2016 and retired from GEO in July of
2020.
GEO previously announced the appointment of Paul Laird as Senior
Vice President of Secure Services, effective January 1, 2025,
replacing James Black who will retire on December 31, 2024 as
previously announced. Mr. Laird joined GEO in 2015 as Eastern
Region Director of Operations and was subsequently promoted to
Western Region Vice President and was most recently transferred to
Eastern Region Vice President. Prior to joining GEO, he served as
Regional Director of the Federal Bureau of Prisons, North Central
Regional Office, overseeing 20 facilities. Prior to that
assignment, he served five years as the Chief Operating Officer of
Federal Prison Industries and as Assistant Director of the
Industries, Educational and Vocational Training Division. He also
served on the AbilityOne Commission as a Presidential Appointee
representing the United States Department of Justice between 2005
and 2015.
GEO also announced the appointment of Daniel Ragsdale as Senior
Vice President, Contract Administration and Compliance, effective
January 1, 2025. Mr. Ragsdale joined GEO in 2017 as Executive Vice
President, Contract Compliance, after a successful career at ICE,
where he served as Deputy Director from 2012 to 2017. In that
capacity, he served as Chief Operating Officer for ICE, leading
20,000 employees, including 7,000 criminal investigators at
Homeland Security Investigations and 6,000 officers in Enforcement
and Removal Operations. He also previously served as a Special
Assistant U.S. Attorney in the Criminal Division of the U.S.
Attorney’s Office for the District of Arizona.
George C. Zoley, Executive Chairman of GEO, said, “We are
pleased to welcome back David Donahue to GEO in his new role as
Chief Executive Officer. His more than 40 years of experience in
corrections and detention, coupled with his experience in
operational planning, facility activations, and managing and
overseeing operational teams will serve as an asset to our Company
as we face the new and expanding opportunities ahead. We are also
pleased to welcome Paul Laird and Dan Ragsdale to our Senior
Management team. Mr. Laird’s operational experience and Mr.
Ragsdale’s background in federal contract administration will
continue to be important assets for our Company.
We are continuing to prepare for what we believe are potentially
unprecedented future growth opportunities. We are making a $70
million investment in capital expenditures to strengthen our
capabilities to deliver expanded detention capacity, secure
transportation, and electronic monitoring and related services to
ICE. We also intend to pursue the possible sale of several of our
underperforming company-owned state correctional facilities with
the objective of offsetting these capital investments and further
reducing our overall debt.”
About The GEO Group
The GEO Group, Inc. (NYSE: GEO) 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. GEO’s diversified
services include enhanced in-custody rehabilitation and
post-release support through the award-winning GEO Continuum of
Care®, secure transportation, electronic monitoring,
community-based programs, and correctional health and mental health
care. GEO’s worldwide operations include the ownership and/or
delivery of support services for 99 facilities totaling
approximately 80,000 beds, including idle facilities and projects
under development, with a workforce of up to approximately 18,000
employees.
Use of forward-looking statements
This news release may contain “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and the U.S. Private Securities Litigation Reform
Act of 1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
cautionary statements and risk factors contained in GEO's filings
with the U.S. Securities and Exchange Commission including its Form
10-K, 10-Q and 8-K reports. All forward-looking statements speak
only as of the date of this news release and are based on current
expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements. Readers are
strongly encouraged to read the full cautionary statements and risk
factors contained in GEO’s filings with the U.S. Securities and
Exchange Commission, including those referenced above. GEO
disclaims any obligation to update or revise any forward-looking
statements, except as required by law.
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Pablo E. Paez (866) 301 4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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