Business
BrightSpring Health Services, Inc. Enters into Definitive Agreement to Divest Community Living Business to Sevita; Reports Preliminary 2024 Financial Results and Provides 2025 Guidance Excluding Community Living
Streamlined organization and Provider Services segment to optimize resource allocationProvider Services focus on Home Health/Hospice, Personal Care,
About this update from Brightspring Health Services, Inc.
[{"type":"text","content":"Streamlined organization and Provider Services segment to optimize resource allocationProvider Services focus on Home Health/Hospice, Personal Care, Rehabilitation Services, and Care Management strategic prioritiesProceeds from the sale will be used to reduce debt resulting in accelerated deleveraging while also increasing capital availabilityDivesture expected to increase Company Revenue and EBITDA Growth Rates and Cash Conversion, as well as Provider Services Revenue and EBITDA Growth Rates and Margin1Company reports 2024 preliminary Revenue and Adjusted EBITDA, above prior guidance issued on November 1, 2024, and initiates 2025 guidance excluding Community Living LOUISVILLE, Ky., Jan. 20, 2025 (GLOBE NEWSWIRE) -- BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based pharmacy and health services for complex populations, today announced it has entered into a definitive agreement to divest its Community Living business, namely ResCare Community Living, to Sevita, a leading provider of home and community-based specialty health care, for $835 million in cash consideration, subject to customary adjustments. The transaction is expected to close in 2025, pursuant to regulatory approvals and typical closing conditions. Following the divestiture, BrightSpring’s Provider Services will be comprised of Home Health and Hospice, Personal Care, Rehabilitation Services, and Primary Care. These service lines have all continued to demonstrate leading quality measures and attractive growth, as well as opportunities to deploy capital to further advance service capabilities and expand geographic coverage. The Company expects to realize additional operational efficiencies across the BrightSpring platform after the divestiture, with a more synergistic portfolio of service offerings overall. The transaction is expected to be accretive to both Company and Provider Services Revenue growth and Adjusted EBITDA growth. For five decades, Community Living has provided critical services for individuals with intellectual and developmental disabilities (I/DD) and behavioral conditions. “We are very proud of our mission and heritage, with specialized services that allow individuals to live a much more independent life in their communities, outside of institutions, where they receive o...