LOUISVILLE - BrightSpring Health Services (NASDAQ: BTSG), a provider of home and community-based health services, has completed the acquisition of Haven Hospice assets in North Central Florida. The $60 million transaction, effective September 1, 2024, allows the company to offer comprehensive hospice care services across 18 counties in Florida.
The acquisition includes a Certificate of Need for hospice services, enabling BrightSpring to extend its reach in Florida's Agency for Health Care Administration service areas 3A, 4A, and 4B. BrightSpring's President and CEO, Jon Rousseau, expressed commitment to delivering high-quality hospice care to Florida's high-need populations.
The purchase consideration comprises $15 million in cash, $30 million in company equity, and a $15 million seller note payable in four years. This move is part of BrightSpring's strategy to provide integrated health solutions to specialized and chronic care populations across the United States.
BrightSpring, which serves over 400,000 customers, clients, and patients daily, is recognized for its top-tier quality in hospice services. The company operates across all 50 states through various service lines, including pharmacy, primary care, home health care, rehabilitation, and behavioral health.
The information is based on a press release statement from BrightSpring Health Services.
In other recent news, BrightSpring Health Services has announced an agreement to acquire Haven Hospice, marking its entry into the Florida market. The acquisition, worth a total consideration of $60 million, is set to expand BrightSpring's hospice care offerings. The transaction is anticipated to be finalized in the third quarter of 2024, enabling the company to offer advanced care planning, palliative, and hospice services in certain Florida service areas.
Additionally, BrightSpring has been the subject of significant developments. BTIG, a respected analysis firm, initiated coverage of BrightSpring with a Buy rating. The firm cited the company's potential to capitalize on the rising demand for non-acute care settings due to an aging U.S. population and the increase in chronic diseases.
Moreover, BrightSpring recently appointed Timothy A. Wicks, a healthcare veteran with over two decades of experience, to its board of directors. This strategic move is expected to leverage Wicks' extensive industry knowledge to drive the company's growth.
BrightSpring has also announced several acquisitions, including a Maryland home health operation, a Michigan behavioral therapy company, and a Montana long-term care pharmacy. These acquisitions align with the company's strategy to increase its market penetration and density. These are the recent developments for BrightSpring Health Services.
InvestingPro Insights
As BrightSpring Health Services (NASDAQ: BTSG) expands its operations with the recent acquisition of Haven Hospice assets, the company's financial and market performance metrics offer insights into its current position. According to InvestingPro Data, BrightSpring has a market capitalization of approximately $2.15 billion, reflecting its significant presence in the healthcare industry. The company's revenue growth is notable, with a 21.98% increase over the last twelve months as of Q2 2024, and an even higher quarterly revenue growth of 26.01% for Q2 2024. These figures underscore BrightSpring's expanding market share and its ability to increase revenue streams through strategic acquisitions like Haven Hospice.
Despite not being profitable over the last twelve months, analysts predict that the company will turn a profit this year, as indicated by one of the InvestingPro Tips. This optimism is further supported by the company's large price uptick over the last six months, with a total price return of 40.22% during that period. This suggests that investors are confident in BrightSpring's growth trajectory and its ability to capitalize on the increasing demand for home and community-based health services.
Another InvestingPro Tip highlights that BrightSpring is a prominent player in the Healthcare Providers & Services industry, trading at a low revenue valuation multiple. This could indicate that the company's stock is undervalued based on its revenue, presenting an attractive opportunity for investors looking for growth potential in the healthcare sector.
For readers interested in further analysis, there are additional InvestingPro Tips available on the company, which can be accessed through the dedicated InvestingPro product page for BrightSpring Health Services at https://www.investing.com/pro/BTSG.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.