A complex health care deal involving two acquisitions and four businesses, including the Louisville-based home health services provider BrightSpring and the pharmacy services provider PharMerica, has been completed, the companies said Wednesday.
According to the deal, which was announced in December, the global investment firm KKR, together with an affiliate of Walgreens Boots Alliance, has purchased BrightSpring for about $1.32 billion. Meanwhile, BrightSpring, formerly ResCare, has merged with PharMerica.
BrightSpring supports therapy, vocational training and job placement services for people with disabilities and provides home care for the elderly. PharMerica provides pharmacy management services for institutional health care providers including hospitals, people receiving in-home care and skilled nursing and assisted living facilities.
Both companies are privately held.
The merged company will provide services to more than 300,000 customers in 47 states, Puerto Rico and Canada and will generate combined revenue of about $4.5 billion, the companies said in a news release.
KKR, based in New York City, had, as of Dec. 31, $195 billion in assets in industries including energy, infrastructure and real estate.
The companies said that the combination of BrightSpring and PharMerica “creates a uniquely positioned, diversified health care platform with comprehensive care capabilities across clinical, pharmacy, and non-clinical support services in multiple care settings.”
The merged company will be led by BrightSpring President and CEO Jon Rousseau, who had told Insider in December that the merger would help the companies cut health care costs, in part by making sure that people stick more closely to their medication regimen.
Rousseau also said that the merger was a “terrific opportunity” as it will enable the company to provide better care for the elderly and people with disabilities, which should help make BrightSpring the preferred provider for state and federal agencies.
PharMerica’s capabilities fit well within BrightSpring’s goal to offer diversified health care services to people with disabilities and older customers to keep them out of hospitals as long as possible and to provide care in the patients’ preferred settings, whether at home or in assisted living facilities, Rousseau had said.
BrightSpring achieves those goals by providing day-to-day support to help people stay independent, he said. Those efforts include making sure that people have adequate housing, food, safety and companionship, which all are critical to keeping people healthy.
Another important aspect, he said, is providing people the right medications for their ailments, helping them understand when and how to take their medications and then making sure they do consistently. Failure to adhere to their medication regimen is the main reason people are sent to the hospital, Rousseau said, or back to the hospital after a procedure.
Combining PharMerica’s pharmacy expertise and capabilities with BrightSpring’s care network, including nurses, therapists and physicians, would help both companies make sure that people get the right care and medications at the right time and in the most appropriate settings, Rousseau said.
The CEO also said that he expects the merger would have no impact on the number of Louisville employees, which is near 1,500. In total, BrightSpring employs about 40,000, while PharMerica last year had about 6,000 employees.