BrightSpring Health Services (Nasdaq: BTSG) has entered into an agreement to divest its community living business to Sevita for $835 million in cash. “In Sevita, we are pleased to partner with a new owner with extensive experience in the I/DD industry, who is well-suited to continue to provide compassionate care to the community living client […] The post BrightSpring To Divest Community Living Business to Sevita appeared first on Home Health Care News.
BrightSpring Health Services (Nasdaq: BTSG) has entered into an agreement to divest its community living business to Sevita for $835 million in cash.
“In Sevita, we are pleased to partner with a new owner with extensive experience in the I/DD industry, who is well-suited to continue to provide compassionate care to the community living client population,” BrightSpring President and CEO Jon Rousseau said in a statement. “With enhanced combined processes, technology, and overall capabilities, there are opportunities to share proven and innovative approaches that should advance possibilities for all constituents in this market. I believe both organizations will significantly benefit from amplified focus on core markets.”
Based in Louisville, BrightSpring delivers care to patients at home and in the community. The company focuses on complex populations, offering primary care, home- and community-based services, pharmacy services and rehab services to over 400,000 consumers throughout 50 states. In 2019, private equity firm KKR purchased BrightSpring for $1.32 billion.
Upon completion of the transaction, BrightSpring’s services lines will include home health, hospice, personal care, rehabilitation services and primary care.
On its end, Sevita delivers home and community-based care for adults and children with intellectual and developmental disabilities and individuals with complex care needs. The company serves 50,000 individuals in 40 states.
The agreement to divest ResCare Community Living to Sevita is slated to close this year. ResCare Community generated roughly $1.2 billion in revenue and $128 million of adjusted EBITDA in 2024.
“Sevita and ResCare Community Living share a deep commitment to providing quality community-based health care and improving the lives of those who rely on us every day,” Philip Kaufman, CEO of Sevita, said in the statement. “We look forward to welcoming ResCare Community Living’s talented and experienced team to Sevita. Together, we will be positioned to support more people in need of these impactful services, deploy learnings and best practices from both organizations, and make continued investments in our homes, service delivery and technology – all with the goal of enhancing the lives of the individuals that we are privileged to serve.”
Jefferies analysts described the decision to divest as a positive move and expect the company’s stock to re-rate upward.
“Investors have long lamented the complexity of BTSG’s mix of business lines and have pointed to the ResCare community living segment as the ‘odd one out’ or ‘the one that doesn’t belong’ in the portfolio,” analysts wrote. “Also, investors viewed ResCare’s lower growth as a drag to the company’s enterprise-level valuation. Given these factors, we view the announcement of ResCare’s sale very positively.”
The post BrightSpring To Divest Community Living Business to Sevita appeared first on Home Health Care News.
