KKR-Backed Brightspring Files for Major IPO
KKR-backed Brightspring Health Services Inc. has become the first company to file for a major initial public offering (IPO) in 2024. The company, which provides home health and hospice services, is looking to raise up to $100 million in the offering.
Background of Brightspring
Brightspring is a leading provider of home health and hospice services in the United States. The company was founded in 2018 and is headquartered in Louisville, Kentucky. It is owned by KKR, a global investment firm.
Brightspring provides a range of services, including home health, hospice, and personal care services. It also offers specialized services such as palliative care, geriatric care, and post-acute care. The company has a network of more than 1,000 locations across the United States.
Brightspring’s Financial Performance
Brightspring reported revenue of $1.2 billion in the 12 months ended September 30, 2023. This was an increase of 11% from the prior year. The company’s net income was $87 million in the same period, up from $77 million in the prior year.
Brightspring’s revenue is primarily derived from Medicare and Medicaid reimbursements. The company also receives revenue from private payers and other sources.
Brightspring’s IPO Plans
Brightspring has filed for an IPO with the U.S. Securities and Exchange Commission. The company is looking to raise up to $100 million in the offering. The proceeds from the offering will be used to pay down debt and for general corporate purposes.
The company has not yet set a date for the offering. It is expected to take place in the second half of 2024.
KKR’s Investment in Brightspring
KKR has been a major investor in Brightspring since 2018. The firm has invested more than $1 billion in the company. KKR has also provided Brightspring with debt financing and other forms of capital.
KKR’s investment in Brightspring has been a success. The company has grown rapidly since KKR’s investment and is now one of the largest home health and hospice providers in the United States.
Outlook for Brightspring
Brightspring is well-positioned to capitalize on the growing demand for home health and hospice services in the United States. The company has a strong network of locations and a well-established brand.
The company is also well-positioned to benefit from the aging population in the United States. The number of people aged 65 and over is expected to increase significantly over the next decade, creating a larger market for Brightspring’s services.
Risks for Brightspring
There are several risks associated with Brightspring’s business. The company is heavily reliant on Medicare and Medicaid reimbursements, which are subject to change. The company is also subject to government regulations, which could have a negative impact on its business.
In addition, the company is facing increased competition from other home health and hospice providers. This could lead to lower prices and reduced margins.
Conclusion
Brightspring Health Services Inc. has become the first company to file for a major initial public offering (IPO) in 2024. The company is looking to raise up to $100 million in the offering. Brightspring is a leading provider of home health and hospice services in the United States and is owned by KKR, a global investment firm. The company has a strong network of locations and a well-established brand, and is well-positioned to capitalize on the growing demand for home health and hospice services in the United States. However, there are several risks associated with Brightspring’s business, including changes to Medicare and Medicaid reimbursements and increased competition.