HOUSTON, May 1, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced today that it has completed the purchase of the Brush Correctional Facility from GRW Corporation. The transaction closed on April 30, 2007, and Cornell has assumed operation of the facility beginning May 1. Total consideration paid for the 270-bed women's facility was approximately $8.9 million, which the company funded through available working capital.
Pursuant to the closing conditions of the purchase, Cornell has entered into an operating agreement with the City of Brush with respect to the facility and the City's underlying agreement with the Colorado Department of Corrections. Based on current operations, Cornell anticipates that this facility will generate approximately $5.1 million in annualized revenues.
About Cornell Companies
Cornell Companies, Inc. is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy. The Company (www.cornellcompanies.com) has 80 facilities in 16 states and the District of Columbia with a total service capacity of 18,747.
The Cornell Companies, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1468
Statements regarding the acquisition of the correctional facility, its expected impact on future revenues, as well as any other statements that are not historical facts, are forward-looking statements within the meaning of applicable securities laws that involve certain risks, uncertainties and assumptions. These include but are not limited to Cornell's ability to continuously operate the facility according to expectations, actions by third parties, and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission, which are available free of charge on the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.