GEO Group Completes $950 Million Adelanto Asset Sale
GEO said it will use the proceeds with operating cash flow to cut debt, buy back stock, and fund other corporate purposes.
The GEO Group, Inc. (GEO) completed the sale of the Adelanto West, Adelanto East, and Desert View ICE Processing Center complex in Adelanto, California, to the U.S. federal government for $950 million.
The transaction was structured as an asset purchase. GEO said it expects to use the net proceeds from the sale, along with cash flow from operations, to reduce the company’s debt, repurchase shares of its common stock, and for other general corporate purposes.
George C. Zoley, GEO’s Chairman, Chief Executive Officer, and Founder, said, “We are pleased with the completion of these important asset sales to the U.S. federal government, and we look forward to continuing to provide high-quality secure support services under our existing long-term contracts with ICE. We are proud of our 40-year public-private partnership with ICE, and we stand ready to continue to assist the federal government in meeting its immigration enforcement priorities. We remain focused on allocating capital to enhance long-term value for shareholders, including through share repurchases.”
The Adelanto sale follows a pattern of GEO monetizing company-owned facilities while retaining service contracts. In June 2025, GEO entered a purchase agreement to sell the company-owned Lawton Correctional Facility in Oklahoma for $312 million, with closing and an operational transition to the Oklahoma Department of Corrections expected on July 25, 2025. GEO expected to use those net proceeds to pay down debt and for general corporate purposes, and Zoley described the Lawton sale as a significant deleveraging event.
In August 2025, GEO reported that a court settlement had lifted a more-than-four-year-old order that had prohibited intake at the company-owned, 1,940-bed Adelanto ICE Processing Center. The Adelanto Center had been ramping up over the last two months and, at full occupancy, was expected to generate up to approximately $31 million in additional incremental annualized revenues, with margins consistent with GEO’s company-owned Secure Services facilities.
GEO finalized a two-year support services contract for the North Lake Facility, effective July 18, 2025, expected to generate in excess of $85 million in annualized revenues at full occupancy, and a contract modification activated the 1,868-bed D. Ray James Facility in Georgia, creating a 2,986-bed complex with the Folkston ICE Processing Center and expected to generate approximately $66 million in incremental annualized revenues at full occupancy.
The Adelanto complex sale is a larger single-asset monetization than the $312 million Lawton agreement and sits alongside those California ICE operations that GEO had been ramping after the court restrictions were lifted. Zoley’s remarks framed the Adelanto transaction as part of a continuing public-private partnership with ICE and as a capital-allocation step that includes share repurchases.