BrightSpring Launches $1B IPO

BrightSpring Health Services is pursuing an initial public offering (IPO) and expects to begin trading on the NASDAQ. The company, which does not yet have a stock symbol, seeks to raise $1 billion through the IPO.

The company indicated its intent to go public on Tuesday in a U.S. Securities and Exchange Commission filing. The filing did not provide the specific financial terms for the  pending transaction.

Following this offering, BrightSpring’s current backers — KKR Phoenix Aggregator L.P., and Walgreens Co., an affiliate of Walgreens Boots Alliance Inc. (NASDAQ: WBA) — will receive a yet-to-be-determined percentage of shares.

“We believe the historical results of the company are due to both our scale and diversified yet complementary services, which have underpinned historical financial stability while also enabling us to grow and pursue opportunities in attractive markets principally in home and community settings,” BrightSpring indicated in the filing. “We target customer and patient markets that exhibit strong demand, where we can leverage our scale and infrastructure, and where our services have a clear and tangible value proposition, for example improving quality and reducing health care system costs.”

Goldman Sachs Group Inc., Jefferies Financial Group Inc., Morgan Stanley, UBS Group AG, Bank of America Corp., Guggenheim Securities and Leerink Partners are listed in the top tier of underwriters for the listing. Six banks and KKR itself are also listed in the filing as underwriters.

BrightSpring is a home and community-based health care services platform.

Established as ResCare in 1974, BrightSpring focuses on serving patient populations with complex and specialized care needs across the continuum of care and also offers pharmaceutical and diagnostic services through subsidiaries such as Adoration Health LLC, Pharmacy Alternatives LLC and more.

The senior care provider in 2022 saw $1 billion in revenue growth, a 15.3% increase that reached $7.7 billion. However, its net income decreased by $105.5 million that year.

The company entered the hospice space in 2021 with the $775 million acquisition of Abode Healthcare from the private equity firm Summit Partners.

BrightSpring estimated a combined market opportunity of more than $1.75 trillion, driven by favorable demographics, its geographic scale, participation in value-based payment models, organic growth and strategic acquisitions, the company noted in the SEC filing.

“Within the over $1.75 trillion market opportunity, the company’s platform is able to benefit from a comprehensive set of capabilities that address a number of favorable underlying markets and trends,” the SEC filing noted. “For example, as the baby boomer population ages and life expectancy increases, seniors, who comprise a large portion of our patients, will represent a higher percentage of the overall population.”