BrightSpring Health Services Announces Definitive Agreement to Acquire Haven Hospice, Expanding Hospice Services into Florida

Rhea-AI Summary

BrightSpring Health Services (NASDAQ: BTSG) has completed the acquisition of Haven Hospice, a Florida-based company with a Certificate of Need for hospice care in 18 north central Florida counties. The acquisition, effective September 1, 2024, expands BrightSpring's hospice services into Florida, a CON state. The total consideration for the acquisition is $60 million, structured as $15 million in cash, $30 million in Company equity, and a $15 million seller note payable in 2028.

BrightSpring's CEO, Jon Rousseau, emphasized the importance of compassionate hospice care and the company's commitment to serving high-need Floridians. The acquisition allows BrightSpring to provide advance care planning, palliative, and hospice services in Florida Agency for Health Care Administration service areas 3A, 4A, and 4B.

Positive

• Expansion of hospice services into Florida, a Certificate of Need (CON) state
• Acquisition of Haven Hospice with coverage in 18 north central Florida counties
• BrightSpring's hospice services rated in the top five percent for quality in the industry
• Structured acquisition deal with $60 million total consideration

Negative

• Significant cash outlay of $15 million for the acquisition
• Potential dilution of existing shareholders due to $30 million in Company equity granted
• Long-term debt increase with $15 million seller note payable in 2028

LOUISVILLE, Ky., Sept. 03, 2024 (GLOBE NEWSWIRE) -- BrightSpring Health Services (“BrightSpring” or “the Company”) (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, today announced that it completed the acquisition of the assets of North Central Florida Hospice, Inc. and Haven Medical Group, LLC (collectively “Haven Hospice”), a Florida-based company holding a Certificate of Need (CON) for comprehensive hospice care services in 18 counties in north central Florida, effective September 1, 2024.

“We are excited to welcome Haven Hospice into BrightSpring, expanding our existing hospice services into the CON state of Florida,” said BrightSpring’s President and CEO Jon Rousseau. “The delivery of compassionate hospice care is critical for patients and their families, and we’re committed to delivering that to high-need Floridians. Our hospice services have been rated in the top five percent for quality in the industry, and with this expansion of services to Florida, we can provide high-quality care to more patients and their families during the most difficult time in their lives.”

BrightSpring’s acquisition of Haven allows the Company to provide advance care planning, palliative, and hospice services throughout Florida Agency for Health Care Administration service areas 3A, 4A, and 4B. Total consideration for the acquisition is $60 million, with $15 million in cash paid on September 1, 2024, $30 million in Company equity granted on September 1, 2024, and an additional $15 million in a seller note payable on September 1, 2028.

For more information, please visit https://www.brightspringhealth.com/.

About BrightSpring Health Services

BrightSpring Health Services is the parent company of leading service lines that provide complementary and integrated home- and community-based pharmacy and health solutions for complex populations in need of specialized and/or chronic care. Through the company’s service lines, including pharmacy, primary care and home health care, and rehabilitation and behavioral health, we provide comprehensive care and clinical solutions in all 50 states to over 400,000 customers, clients and patients daily.

Forward Looking Statements

The statements contained in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on BrightSpring’s current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These expectations, beliefs, and projections are expressed in good faith and BrightSpring believes there is a reasonable basis for them. However, there can be no assurance that these expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond BrightSpring’s control. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in BrightSpring’s filings with the Securities and Exchange Commission (the “SEC”) under caption “Risk Factors,” including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent other filings BrightSpring makes with the SEC from time to time. Any forward-looking statement in this press release speaks only as of the date of this release. BrightSpring undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Media Contact:
Leigh White
Leigh.white@brightspringhealth.com
502.630.7412

FAQ

What company did BrightSpring Health Services (BTSG) acquire on September 1, 2024?

BrightSpring Health Services acquired Haven Hospice, a Florida-based company holding a Certificate of Need for comprehensive hospice care services in 18 counties in north central Florida.

How much did BrightSpring Health Services (BTSG) pay for the Haven Hospice acquisition?

The total consideration for the acquisition is $60 million, structured as $15 million in cash, $30 million in Company equity, and a $15 million seller note payable on September 1, 2028.

What new markets does the Haven Hospice acquisition open up for BrightSpring Health Services (BTSG)?

The acquisition allows BrightSpring to expand its hospice services into Florida, specifically in the Florida Agency for Health Care Administration service areas 3A, 4A, and 4B.

How does the Haven Hospice acquisition align with BrightSpring Health Services' (BTSG) quality of care?

BrightSpring's hospice services are rated in the top five percent for quality in the industry, and this acquisition allows them to extend high-quality care to more patients and families in Florida.