BrightSpring Health Services: Divesting Community Living to Focus on Core Growth Markets

BrightSpring Health Services, Inc. (NASDAQ: BTSG) has entered into a definitive agreement to divest its Community Living business to Sevita, a leading provider of home and community-based specialty health care. This strategic move will allow BrightSpring to focus on its core markets and drive growth in its remaining Provider Services segments. In addition, the company has reported preliminary 2024 financial results and provided 2025 guidance excluding Community Living.



The divestment of the Community Living business, ResCare Community Living, is expected to generate approximately $1.2 billion in revenue and $128 million in Adjusted EBITDA. The transaction is valued at $835 million in cash consideration, subject to customary adjustments, and is expected to close in 2025, pending 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 demonstrated leading quality measures and attractive growth opportunities, as well as the potential to deploy capital to further advance service capabilities and expand geographic coverage. 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. Jon Rousseau, Chairman, President, and Chief Executive Officer of BrightSpring, expressed pride in the mission and heritage of Community Living, highlighting the specialized services that allow individuals to live more independent lives in their communities. The divestment to Sevita ensures the continuity of these important services while allowing BrightSpring to focus on a concentrated group of customers, patients, and stakeholders in the future.



The divestiture is expected to increase BrightSpring's expected Revenue and Adjusted EBITDA growth rates and maximize exposure to target growth markets that require the company's needed and valuable solutions, such as home health, rehab, primary care, hospice, and specialty and home and community pharmacy. The transaction will also accelerate the Company's deleveraging path towards the long-term target of less than 3.0x leverage.

In addition to the divestment announcement, BrightSpring reported preliminary 2024 Revenue and Adjusted EBITDA above prior guidance issued on November 1, 2024. The company has also initiated 2025 guidance excluding Community Living, reflecting its focus on the remaining Provider Services segments.

BrightSpring's strategic focus on its core markets, combined with the expected synergies and growth opportunities in the remaining Provider Services segments, positions the company well for continued success in the home and community-based health services sector. The divestment of Community Living allows BrightSpring to maximize its resources and capital allocation, driving growth and value for shareholders.

As BrightSpring continues to execute on its growth strategies, investors can expect the company to deliver strong financial performance and create long-term value in the home and community-based health services market.