A US workforce housing company that owns and partially operates ICE’s largest youth and family detention center.
Target Hospitality is a U.S. publicly-traded company that specializes in providing logistical support for fossil fuel companies by setting up temporary workforce housing camps (“man camps”) for workers in oil and gas fields. It formed in March 2019 as the merger of two companies: Target Logistics Management and RL Signor Holdings. Before the merger, Target Logistics Management was a subsidiary of Algeco Scotsman, owned by private equity firm TDR Capital, which also separately owned RL Signor Holdings. TDR Capital sold both companies to Platinum Eagle Acquisition Corp, a company that was formed for the purpose of this merger, which then changed its name to Target Hospitality. The company’s revenue in 2018 was $66.7 million.
Target Hospitality owns the largest immigrant youth and family detention center in the U.S.: the South Texas Family Residential Center in Dilley, TX. In 2014, Target Logistics Management built the detention center on land owned by the Koontz Corporation, a San Antonio-based real estate firm. Since it opened in 2014, the detention center has been operated by CoreCivic, which leases the facility from Target Hospitality on behalf of Immigration and Customs Enforcement (ICE). The facility has 2,400 beds and accounts for almost two-thirds of ICE’s total family detention capacity. In addition to owning the property, Target Hospitality is responsible for the facility’s maintenance and for providing food for the people detained there. This contract accounts for 22 percent of Target Hospitality’s 2018 revenue, making CoreCivic its largest customer. In 2016, the company extended its contract with CoreCivic until September 2021.
Target Hospitality’s other business activity, accounting for the other 78 percent of its revenue, is supporting the U.S. oil and gas extractive industry. The company serves most major fossil fuel companies drilling for oil and gas in the U.S., including Chevron, ConocoPhillips, Halliburton, Noble Energy, Royal Dutch Shell, and TransCanada for its planned Keystone XL Pipeline project.