Declaring it has signed a formal deal to sell ResCare Community Living, a Community Living company, to Sevita for $835 million in cash, BrightSpring Health Services (BTSG, Financials). Expected to conclude in 2025, the deal is subject to usual revisions and regulatory clearances. Sales proceeds will mostly be utilized to accelerate BrightSpring's deleveraging plan by lowering debt, hence improving income and EBITDA growth rates.

By streamlining BrightSpring's activities, the divestment is projected to enable the firm to concentrate on its core service areashome health, hospice, personal care, and rehabilitation servicesincluding The firm anticipates the simplified operations to increase operational efficiency, simplify its payer mix, and boost business synergies across its surviving service divisions. The divestment also fits BrightSpring's long-term plan of focusing on rapidly expanding areas needing its specific solutions.

With net income projected between $11.2 billion and $11.3 billion, BrightSpring published preliminary full-year 2024 statistics showing a 26.9% to 28.0% growth rate over 2023. Rising 15.8% from 2023, adjusted EBITDA should reach $588 million. Reflecting development of 14.4% to 19.3% over 2024, the firm anticipates net sales between $11.5 billion and $12 billion for 2025 excluding the sold Community Living division. Forecast to range from $540 million to $555 million, adjusted EBITDA shows up to 20.7% increase.

Community Living, to be sold, generated about $1.2 billion in 2024 and $128 million in Adjusted EBITDA. Some 13,500 BrightSpring employees support it, which serves approximately 14,000 clients. Expect $715 million in after-tax cash profits from the sale.

Leading provider of home and community-based specialized health care Sevita stressed its dedication to preserving the quality of treatment for people with intellectual and developmental impairments. Jon Rousseau, CEO of BrightSpring, expressed hope Sevita will be able to keep compassionately and creatively serving the Community Living clientele.