BI Inc. To Merge With GEO Group in $415 Mln Deal

BI Inc., which is backed by AEA Investors, has agreed to merge with The GEO Group in a deal valued at $415 million. BI, of Boulder, Colo., provides supervision technologies and community-based cognitive behavioral reentry programs for adult and juvenile offenders. GEO Group also supplies correctional, detention, and residential treatment services to federal, state, and local government agencies globally. AEA is a PE firm. News of the deal was disclosed by Harris Williams, which provided financial advice to BI.

PRESS RELEASE

Harris Williams & Co. is pleased to announce that BI Incorporated (BI), a portfolio company of AEA Investors LP (AEA), has entered into a definitive agreement to merge with The GEO Group (GEO; NYSE:GEO). The transaction, valued at approximately $415 million, is expected to close in the first quarter of 2011. The transaction is being led by Chris Williams from the firm’s Richmond office as well as Jim Reinhart, Vince Carey, and Matt Conaty from the firm’s San Francisco office. Harris Williams previously advised BI in its 2006 sale from Kohlberg & Company to Quad-C Management and in its 2008 sale from Quad-C Management to AEA.
“We have known BI’s management team for many years, and we are delighted to have represented them again in their merger with GEO.  The transaction exemplifies the opportunities that are available with the right strategic partner for a leader in a very targeted, niche market,” said Chris Williams, managing director and co-founder of Harris Williams & Co.
Established in 1978, BI is the leading technology, treatment and supervision company in community corrections today. BI contracts with approximately 900 governmental agencies nationwide, supporting them with a full continuum of intensive supervision technologies and community-based cognitive behavioral reentry programs for adult and juvenile offenders. BI works closely with local public corrections officials to cost effectively reduce recidivism, promote public safety, and strengthen the communities it serves using evidence-based practices in a community setting.
AEA, a global private equity partner to middle market companies, was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. AEA focuses on control buyouts in four industry sectors: value-added industrial products, specialty chemicals, consumer products and services involved in these sectors. Headquartered in NY, the company has locations in Stamford, CT; London, Munich, Hong Kong, and Shanghai.
GEO is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of approximately 81,000 beds at 118 correctional, detention and residential treatment facilities, including projects under development.
Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of sell side excellence serving clients worldwide. The firm is focused exclusively on the middle market providing sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorized and regulated by the Financial Services Authority.  Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.