Prison Realty Set to Sell $300 Mln Stake to Blackstone Group
Prison Realty Set to Sell $300 Mln Stake to Blackstone Group Nashville, Tennessee, Dec. 22 (Bloomberg) -- Prison Realty Trust Inc., the largest private owner of prisons in the U.S., is expected to announce as soon as next week that it agreed to sell a stake worth at least $300 million to investment bank Blackstone Group Inc. and Fortress Investment Group, said people familiar with the situation.
As part of the agreement, industry pioneer Doctor Crants and other management will step down from day-to-day management of the company, the people said.
Prison Realty's shares are down 86 percent since 1997 amid an ill-fated plan to turn itself into a real estate investment trust, several high-profile escapes at its prisons and increased payments needed to keep afloat the affiliated company that runs its prisons and is owned by senior officials. The company said last month it was looking for an investor.
Formerly known as Corrections Corp. of America, Prison Realty owns 51 prisons in 18 states, the District of Columbia and the U.K. It leases the prisons to an affiliated company owned in part by senior management.
Company officials declined to comment. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.