DHS buys two California ICE detention centers from CoreCivic for $1.5B
CoreCivic sold the Otay Mesa Detention Center in San Diego County and the California City Detention Facility in Kern County to the U.S. Department of Homeland Security for $1.5 billion, with CoreCivic continuing to operate under existing ICE contracts; the sale closed July 2 and is expected to yield about $1.1 billion in net proceeds after taxes, which could go toward debt reduction or stock buybacks. The deal advances a DHS plan to expand detention capacity outside of private-prison contractors, while local health-inspection disputes and lawsuits over permits continue at the facilities.
