Almost a 12 months after shying away from changing into an preliminary public providing (IPO), BrightSpring Well being Providers Inc. has allegedly re-filed, this time with a a lot increased valuation.
The corporate, which doesn’t but have a inventory image, raised the bar from when it initially filed in October 2021 with a $100 million itemizing. BrightSpring later withdrew its preliminary public providing plan the next 12 months in November.
Now the house and community-based well being care providers platform has set a $1 billion itemizing aim with plans to launch buying and selling on the NASDAQ by the top of this 12 months, based on a Bloomberg Information report.
BrightSpring is backed by non-public fairness agency KKR & Co. (NYSE: KKR), subsidiary of KKR Group Holdings Corp. Eight different monetary establishments are underwriting the IPO, together with Goldman Sachs (NYSE: GS), Financial institution of America Corp. (NYSE: BAC) and Wells Fargo & Co. (NYSE: WFC), nameless sources “aware of the state of affairs” instructed Bloomberg.
“[BrightSpring] has confidentially refiled for a list with a aim of elevating $1 billion. The house and community-based health-care providers supplier backed by KKR & Co. is slated for the fourth quarter,” sources instructed Bloomberg. “BrightSpring has re-engaged Goldman Sachs Group Inc. and KKR’s personal capital markets division as lead bookrunners for the providing.”
The ultimate determination on particulars and timing of the IPO launch is pending and topic to alter, the unnamed sources instructed Bloomberg/stated within the Bloomberg report.
BrightSpring didn’t reply to Hospice Information’ request for remark concerning the pending deal.
The Louisville, Kentucky-based firm focuses on serving affected person populations with advanced and specialised care wants throughout the continuum of care and in addition provides pharmaceutical and diagnostic providers by subsidiaries reminiscent of Adoration Well being LLC, Pharmacy Options LLC and extra.
Traditionally a private care firm, BrightSpring stepped into the hospice house in February 2021 with its $775 million acquisition of Abode Healthcare from the non-public fairness agency Summit Companions. The corporate went on to buy North Carolina-based Dare County Residence Well being & Hospice for $2.9 million in September that very same 12 months.
The corporate has been quiet on the merger and acquisition entrance in the course of the previous two years following a swath of exercise between 2018 and 2020. BrightSpring accomplished a dozen offers annually throughout that point span, in addition to six acquisitions by Q2 2021 that included the Abode and Dare County offers.
A extremely aggressive well being care market, labor shortages and reimbursement shifts have been among the danger components that BrightSpring beforehand cited within the 2021 submitting with the U.S. Securities and Alternate Fee (SEC).
One other danger the corporate recognized within the earlier submitting was that changing into an IPO may restrict or adversely have an effect on execution of their development technique. BrightSpring cited a big quantity of debt, totaling practically $3.5 billion in 2021, which means the corporate should commit “a considerable portion” of its money flows to paying down that sum.
Established as ResCare in 1974, BrightSpring presently has an annual census of 350,000 and offers care to seniors throughout all 50 states, in addition to in Puerto Rico and Canada.
Within the firm’s 2021 SEC submitting, it cited a mixed market alternative of $1.5 trillion throughout all of its enterprise strains as a contributing issue behind the choice to go public.
“A sunnier reimbursement panorama for house well being may partly be driving BrightSpring’s transfer to the general public markets,” Aaron Weitzman and Erin Brodwin, well being tech reporters at Axios, wrote in a press release shared with Hospice Information.
BrightSpring beforehand forecasted development alternatives by natural growth, referral synergies throughout its service strains, rising value-based fee fashions and strategic acquisitions, based on the SEC submitting.
The corporate reported $5.6 billion in annual income in 2020, a 23% year-over-year rise from the prior 12 months.
“By offering a complementary and purpose-built suite of providers, our care mannequin is designed to deal with extra affected person wants and higher combine well being providers supply to enhance outcomes and affected person experiences, whereas lowering general prices,” BrightSpring beforehand wrote within the submitting.