On Tuesday, BrightSpring Health Services (Nasdaq: BTSG) announced that its community living divestiture to Sevita had closed.
The deal for ResCare Community Living, announced in January 2025 and delayed by antitrust concerns, was structured as an all-cash deal for $835 million.
“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,” Jon Rousseau, president and CEO of BrightSpring Health Services, said in a statement. “This transition marks a thoughtful next chapter for both BrightSpring and Sevita, allowing each company to focus on its strategic direction while continuing to fulfill respective missions of helping people with complex care needs live better lives.”
Louisville, Kentucky-based BrightSpring offers home- and community-based pharmacy and provider health solutions for complex populations in all 50 states. The provider serves over 450,000 customers. In 2024, BrightSpring’s ResCare generated roughly $1.2 billion in revenue and $128 million of adjusted EBITDA.
The deal was originally slated to close in 2025, but was delayed by a Federal Trade Commission (FTC_ antitrust complaint. The FTC cleared the deal after Sevita agreed to sell 126 intermediate care facilities. The FTC’s clearance of the deal signals a shift in the U.S. presidential approach to antitrust enforcement.
At the time the deal was struck, analysts said the sale of ResCare was a positive move for BrightSpring.
“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,” Jefferies 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.”
On Sevita’s end, the Edina, Minnesota-based company provides home and community-based specialty health care to 50,000 people in 40 states.
“Expanding our footprint and welcoming ResCare Community Living will allow us to utilize the strengths of both organizations, enhance our programming and reach even more people in need of high-quality services and supports,” Philip Kaufman, CEO of Sevita, said. “We are confident that we can be better together and continue to innovate service delivery as our field evolves to enhance the lives of the individuals we are honored to support.”