BrightSpring Health Services, Inc. (NASDAQ: BTSG) completed the sale of its ResCare Community Living business to Sevita for $835 million in cash on March 31 2026. The transaction marks the first step in BrightSpring’s plan to divest its Community Living operations and concentrate on higher‑margin pharmacy and provider services.
The deal was subject to antitrust scrutiny from the Federal Trade Commission. To secure approval, Sevita agreed to sell 126–128 intermediate‑care facilities to the Dungarvin Group, a move that cleared the regulatory hurdle and allowed the transaction to close.
ResCare had generated roughly $1.2 billion in revenue and $128 million of adjusted EBITDA in 2024, a lower‑margin segment compared to BrightSpring’s core pharmacy and provider services. By removing this unit, BrightSpring expects to lift its overall margin profile and accelerate growth in its more profitable segments.
Proceeds from the sale will be used to pay down a $425 million term loan, helping BrightSpring reduce its leverage ratio to 2.5× by mid‑2026. The deleveraging effort is part of a broader strategy to strengthen the balance sheet and free capital for future investments.
Analysts reacted positively to the transaction, noting that the sale removes a drag on earnings and improves the company’s risk profile. The market welcomed the news, with BrightSpring’s shares rising 5.54 % in pre‑market trading after the company’s Q4 2025 earnings announcement.
Jon Rousseau, BrightSpring’s CEO, said, “The divestiture of our Community Living business was not a decision made lightly and was guided by our priority of ensuring continued high‑quality, innovative care for clients.” Philip Kaufman, Sevita’s CEO, added, “The Sevita family of services is proud to welcome ResCare Community Living to our Community Services team, expanding our footprint and enhancing our programming.”
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