- The new management contract is for up to another 1K medium-security inmates at CCA's (NYSE:CXW) Red Rock Correctional Center. The facility currently has capacity of 1,596 beds and is housing up to 1K inmates under a previous contract.
- In connection with the new deal, CCA will expand the center to a capacity of 2,024 beds at a total cost of $40M. The company expects to begin receiving inmates under this new contract late in Q3 or early Q4 next year.
- The deal is expected to generate another $22M-$25M of annual revenue.
- Source: Press Release