BrightSpring Closes Multiple Deals, Including A Home-Based Care Acquisition

Two months after it was first listed on the public market, BrightSpring Health Services (Nasdaq: BTSG) has closed on multiple acquisitions.

The company announced Tuesday that it has acquired a Maryland-based home health operation, the remaining equity interest in a behavioral therapy JV in Michigan and a long-term care pharmacy in Montana.

For one, the deals align with what is likely to be a relatively aggressive M&A strategy from the home- and community-based services (HCBS) provider. But they also are a good representation of the brand diversity that BrightSpring has, from home health, to behavioral health, to long-term care – all across the country.


“We are excited to welcome these companies and their employees to our uniquely scaled and differentiated BrightSpring platform consisting of leading and complementary health services,” BrightSpring President and CEO Jon Rousseau said in a statement. “These companies share our values and strong commitment to providing top-quality care to high-need patient populations who require it most. Together, we can reach more communities, delivering high-quality services and care directly where people reside.”

Based in Louisville, BrightSpring provides care to complex populations in the home and in the community. It offers primary care, HCBS, pharmacy services and rehab services to over 400,000 consumers throughout 50 states.

Its latest acquisitions “continue to support market penetration and market density growth strategies,” according to the company.


“At BrightSpring, we look forward to more opportunities for community and patient impact that result from partnering with strong local companies such as these, leveraging our unique platform strengths and capabilities to add value, and expanding and deepening our footprint in our markets,” Rousseau continued.

The home health tuck-in, specifically, was finalized on Jan. 1. The behavioral health deal was effective on March 1, while the long-term care pharmacy was effective on March 19.

Jefferies analysts wrote in a note Tuesday that the first-quarter deals serve as “early proof of management’s ability to execute on its strategy.”

“With less than 3 months as a public company under its belt, we interpret BrightSpring’s deal announcements as incrementally positive,” the note read. “A major piece of the pushback that we’ve received on the name was whether BrightSpring’s balance sheet and leverage profile would enable the company to complete additional M&A near term, so the completion of the deals is clear evidence that the company can fund and close accretive acquisitions that drive positive earnings surprises. Finally, with management suggesting on their 4Q call that the acquisition pipeline is robust, we think there is remaining sizable opportunity for BrightSpring to complete incremental deals this year.”

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