CoreCivic Divests California Detention Centers in $1.5 Billion Federal Deal

The sale includes the California City Facility and the Otay Mesa Facility. CoreCivic anticipates these divestitures will yield approximately $1.1 billion in net proceeds after accounting for state and federal income taxes. The company intends to allocate these funds toward reducing its outstanding debt burden, while earmarking the remainder for general corporate activities, such as potential share buybacks.

Despite surrendering ownership, CoreCivic will continue to operate both sites under existing management agreements with Immigration and Customs Enforcement. The California City contract is slated to run through August 2027, while the Otay Mesa agreement extends to December 2029, with an additional five-year option available. These arrangements remain subject to termination clauses held by ICE.