BrightSpring Health Divests Community Living Business For $850 Million To Focus On Core Activities

Core Insights - BrightSpring Health Services Inc (BTSG) has agreed to sell its Community Living business, ResCare Community Living, to Sevita for $835 million in cash, with the deal expected to close in 2025 [1] - The divestiture aligns with BrightSpring's strategic focus on enhancing core services such as home health, hospice, primary care, rehabilitation, and pharmacy solutions [1] - The company anticipates operational efficiencies and stronger revenue growth in its Provider Services portfolio post-sale, supported by an optimized payer mix and focus on high-demand growth markets [2][3] Financial Performance - The Community Living business generated approximately$1.2 billion in revenue and $128 million in adjusted EBITDA in 2024, serving 14,000 clients with 13,500 employees [3] - BrightSpring expects after-tax proceeds of$715 million from the sale, primarily allocated toward debt reduction, improving its financial position [3] - Preliminary 2024 sales are projected to be between $11.2 billion and$11.3 billion, reflecting a year-over-year increase of 26.9% to 28.0% [4] - For 2025, sales are expected to be between $11.5 billion and$12 billion [5] Segment Revenue Expectations - Pharmacy Segment Revenue is anticipated to be between $8.7 billion and$8.75 billion, while Provider Segment Revenue is expected to be between $2.5 billion and$2.55 billion [8] - Adjusted EBITDA for 2024 is expected to be approximately $588 million, with Community Living Adjusted EBITDA around$128 million [8] - Future Pharmacy Segment Revenue is projected to be between $10.05 billion and$10.5 billion, and Provider Segment Revenue between $1.45 billion and$1.5 billion [8] Stock Performance - BTSG stock has increased by 13.6%, reaching $21.08 at the last check [6]