BrightSpring Poised for Deals, Expansion Following IPO

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BrightSpring Health Services (NASDAQ: BTSG) is poised for further expansion following its successful initial public offering (IPO) that was completed in January.

BrightSpring is a home- and community-based health care services platform that serves more than 400,000 patients daily. The company indicated its intent to go public in a Jan. 3 filing with the U.S. Securities and Exchange Commission, with $1 billion IPO.


The company is leveraging coordination and integration of its service lines to foster further growth, according to CEO Jon Rousseau.

“Chronic, higher-cost and higher-need patients, referred to as ‘complex,’ constitute 5% of the population, but 50% of the spending in U.S. health care. These individuals require multiple services over time, better coordinated care, and more person centered care,” Rousseau said in a Q4 2023 earnings call. “Our solution for these patients is to not only provide services, and lower costs, preferred home and community settings, but also to do so with a differentiated care model that consists of three key pillars, including our pharmacy services, provider services, and home-based primary care.”

The company’s provider services includes home health and hospice, among others.


Prior to going public, BrightSpring was owned by affiliates of the investment firm KKR Phoenix Aggregator L.P., and Walgreens Co., a portfolio company of Walgreens Boots Alliance Inc. (NASDAQ: WBA). These stakeholders will continue to hold the majority of Brightspring’s shares.

During the fourth quarter of 2023, BrightSpring brought in net revenue of nearly $2.4 billion, up 20.5% year over year. The company’s gross profit reached $369 million in Q4, compared to $338 million in the fourth quarter of 2022.

These results were slightly reduced due to BrightSpring’s 2022 divestiture of its Equus Workforce Solutions business, a human resources development company, to APM Human Services in a $153 million transaction.

According to its full-year 2024 guidance, the company anticipates earning between $9.35 and $95 billion by the end of December.

“There are upwards of over 400,000 to 500,000 additional referrals a year that we could potentially be taking if we were to serve all of the services and needs that our patients have today,” Rousseau said. “That is our goal over the next five to 10 years to continue to drive more integrated care. It would more than double the company.”

To pursue these potential results, BrightSpring expects to complete a number of forthcoming acquisitions in addition to fostering same-store growth. New transactions could be announced as early as this month or April, according to Rousseau.

“Our acquisitions pipeline has been as large and attractive as ever. Most of our deals are proprietary. Given our relationships, many folks want to sell to our company,” Rousseau said. “They look at us as a winner in the future of health care, so we have tremendous access. Our pipeline has 100 potential deals in it at any point in time. We’re very measured and deliberate about the deals we do.”

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