Onex weighs sale of ResCare, recently rebranded as BrightSpring

  • Onex investment dates to 2004
  • Company serves complex populations: the disabled, elderly, at-risk youth
  • Kentucky company reportedly weighed sale in 2014

Onex Partners is exploring the potential sale of BrightSpring Health Services, which offers various home- and community-based care services to the nation’s most in-need populations, according to people familiar with the matter.

The Louisville, Kentucky, company – which last month changed its name to BrightSpring from ResCare – has engaged Goldman Sachs and Guggenheim Partners for financial advice, the people said.

BrightSpring has garnered significant sponsor interest, though discussions with potential suitors are in the early stages, the people said. First-round bids are likely due later this month, one of the people said.

The company expects to produce 2018 Ebitda of around $150 million, the people said.

Led by CEO and President Jon Rousseau, BrightSpring provides diversified services to all age groups, including daily living support and in-home care, vocational training, job placement, pharmacy, rehab and behavioral health services. Ancillary services include telecare and pharmacy services.

BrightSpring specializes in services tailored to what it describes as the most complex and in-need populations, which includes the disabled, neuro-rehabilitation patients, home-health patients, the elderly and at-risk youth.

The company employs more than 40,000 and offers services in 44 states.

Onex’s investment in BrightSpring dates to 2004, when the Canadian private equity firm invested $110 million for an about 30 percent ownership interest in the company.

The firm purchased the remaining interest in 2010 in a deal that valued BrightSpring at $390 million.

The sponsor’s investment was made through Onex Partners III, which raised C$800 million in 2009.

Reuters reported in August 2014 that the company was exploring a potential sale via Goldman Sachs and Jefferies.

BrightSpring, formerly ResCare, competes with publicly traded Civitas. Vestar Capital Partners purchased the company then known as National Mentor Holdings in 2006, and in 2014 took the company public. The PE firm continues to hold a minority investment in Civitas.

Representatives of Onex and ResCare couldn’t immediately be reached. Those with Goldman and Guggenheim declined to comment.

Action Item: Check out the rest of Onex’s portfolio

Update: This story has been updated with a no comment from Guggenheim