LOUISVILLE - BrightSpring Health Services (NASDAQ: BTSG), a prominent provider of diverse home and community-based health services, today announced a definitive agreement to acquire Haven Hospice, a provider of comprehensive hospice care services in north central Florida. This acquisition is set to expand BrightSpring's hospice care offerings and marks its entry into the Florida market.
Haven Hospice, which operates under the names North Central Florida Hospice, Inc. and Haven Medical Group, LLC, currently holds a Certificate of Need (CON) for 18 counties in Florida. BrightSpring's President and CEO Jon Rousseau expressed the significance of the move, emphasizing the importance of delivering compassionate hospice care to patients and families in high-need areas.
The financial terms of the deal include a total consideration of $60 million, with a $15 million cash payment at closing, $30 million in BrightSpring equity at close, and an additional $15 million in a seller note payable in four years.
With this acquisition, BrightSpring will be able to offer advance care planning, palliative, and hospice services in Florida Agency for Health Care Administration service areas 3A, 4A, and 4B. The transaction is anticipated to be finalized in the third quarter of 2024.
BrightSpring Health Services is known for its comprehensive care and clinical solutions for specialized and chronic care needs, operating across all 50 states and serving over 400,000 customers, clients, and patients daily. The company's diverse service lines include pharmacy, primary care, home health care, rehabilitation, and behavioral health services.
The press release contains forward-looking statements regarding the acquisition and its anticipated benefits. These statements are subject to risks, uncertainties, and changes in circumstances that could affect the actual outcomes. The company has cautioned that the forward-looking statements are based on current expectations and are not guarantees of future performance.
The information provided in this article is based on a press release statement from BrightSpring Health Services.
In other recent news, BrightSpring Health Services has been the subject of significant developments. BTIG, a well-respected analysis firm, initiated coverage of BrightSpring with a Buy rating, citing 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. The firm also anticipates that BrightSpring will maintain strong EBITDA margins and growth, along with solid cash flow.
Alongside these financial predictions, BrightSpring has also made strategic moves to bolster its board and expand its market presence. The company recently appointed Timothy A. Wicks, a healthcare veteran with over two decades of experience, to its board of directors. This move is expected to leverage Wicks' extensive industry knowledge to drive BrightSpring's growth.
Furthermore, BrightSpring has 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 recent developments underscore BrightSpring's commitment to its mission of providing high-quality, lower-cost care settings that are preferred by patients, plans, and providers. As BrightSpring continues to evolve, it remains a company of interest for investors and industry analysts alike.
InvestingPro Insights
BrightSpring Health Services (NASDAQ: BTSG) has made a strategic move to enhance its hospice care capabilities with the acquisition of Haven Hospice, stepping into the Florida market with an eye on expansion and service diversification. The company's financial maneuvering is of particular interest to investors, especially given the current metrics and forecasts.
InvestingPro Data shows a market capitalization of $1.82 billion for BrightSpring, reflecting its significant presence in the healthcare services industry. Despite a negative P/E ratio of -8.32, indicating the company has not been profitable over the last twelve months, analysts are optimistic about BrightSpring's future profitability, with an expected increase in net income this year.
This optimism is further supported by a substantial revenue growth of 19.2% over the last twelve months as of Q1 2024, which could be a positive sign for the company's financial health moving forward.
Among the InvestingPro Tips, it's notable that BrightSpring is trading at a low revenue valuation multiple, suggesting that the company's stock may be undervalued based on its revenue. This could present an opportunity for investors looking for potential growth at a reasonable price.
Still, it is important to consider that two analysts have revised their earnings downwards for the upcoming period, which could signal caution. Moreover, BrightSpring does not pay a dividend to shareholders, which may influence the investment strategies of those prioritizing income generation.
For investors seeking a deeper dive into the metrics and forecasts for BrightSpring Health Services, InvestingPro offers more tips and insights. With additional tips available, investors can leverage this information to make more informed decisions. To access these exclusive insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This promotion not only enhances the value of your investment analysis but also keeps you ahead with the latest data and expert perspectives.
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