ResCare Community Living Acquired by Sevita (~6.5x EBITDA)
- Will Hamilton
- Jan 23, 2025
- 2 min read
Updated: 5 days ago
In January 2025, BrightSpring Health Services, Inc. agreed to divest its ResCare Community Living business to Sevita for $835 million in cash consideration. For Sevita, the acquisition of ResCare expands its scale in the behavioral health and I/DD support markets and reinforces its footprint across community living environments. With Sevita’s existing platform of in-home and residential services for complex care populations, the addition of ResCare’s capabilities and client base is expected to generate operational synergies and broaden service offerings. From a financial structuring perspective, Sevita’s acquisition financing, including a substantial senior secured notes issuance and term loan facilities, underpins the deal alongside refinancing of existing indebtedness tied to the transaction.
Behavioral Health EBITDA Multiples
ResCare Community Living, a long-standing provider of residential and community-based services for individuals with intellectual and developmental disabilities (I/DD), generated roughly $1.2 billion in revenue and $128 million of adjusted EBITDA in 2024, implying multiples of 0.7x revenue and 6.5x EBITDA. The divestiture aligns with BrightSpring’s strategic initiative to streamline operations and sharpen its focus on its core provider services, including home health, hospice, personal care and rehabilitation, while accelerating deleveraging and enhancing revenue and adjusted EBITDA growth metrics.
The implied multiple is generally below the precedents, especially for an asset with such scale, perhaps due to uncertainty around potential changes to Medicaid funding.
Behavioral Health M&A Deal Volume
The number of announced U.S. behavioral health deals was relatively high for each of the first three quarters of 2025, approximating the best quarters ex the 2021 boom. Activity in the mental health and intellectual disability sub-segments remain strong, while addiction services volumes remain relatively weak after sharp declines in 2022 and 2023.
Other Behavioral Health Deals
Read Scope Research's take on other behavioral health M&A transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details for 135 behavioral health deals going back to 2010, 83 of which include reported EBITDA multiples. The behavioral data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.
