By Adriano Marchese
Shares of Target Hospitality and CoreCivic rose after the two companies signed an agreement to resume operations using CoreCivic existing assets in Texas.
Shares of Target Hospitality were 11% higher in premarket trading at $6.16. CoreCivic shares rose by 4.8% to $19.29.
Target Hospitality, a Woodlands, Texas-based provider of vertically integrated modular accommodations and hospitality services, said Thursday that it entered into a five-year lease-and-services agreement with CoreCivic, a Brentwood, Tenn., private-prison company, to resume operations in Dilley, Texas.
The contract is expected to generate $246 million of revenue for Target over the anticipated five-year term, of which $30 million is expected to be realized this year.
The Dilley facility will be capable of supporting up to 2,400 individuals, the company said Thursday.
Under the terms of the contract, Target will provide facility and hospitality solutions to CoreCivic, which will include fixed minimum revenue regardless of occupancy.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 06, 2025 07:52 ET (12:52 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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