BrightSpring Health Services (BTSG) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic vision and business model

• Focuses on integrated home and community health services, combining pharmacy and care delivery for seniors and behavioral populations, emphasizing high-quality, customized, and cost-effective care.

• Operates in large, growing U.S. healthcare markets, leveraging a unique platform to deliver services directly to individuals in their homes or communities.

• Integration of pharmacy and provider services aims to improve outcomes and efficiency for complex patient needs.

• Infrastructure investments support ongoing demand and scalability for future growth.

Growth strategy and financial performance

• Achieved approximately 15% annual EBITDA CAGR over eight years, with 10% organic and 5% acquisition-driven growth.

• Growth driven by volume and market share gains, operational efficiencies from scale, and accretive M&A.

• Pharmacy segment has outpaced provider segment in growth, but both have shown strong double-digit EBITDA increases recently.

• Integrated care and home-based primary care are expected to unlock further growth and payer opportunities.

M&A and expansion initiatives

• Closed six acquisitions in the current year, focusing on low-multiple, geographic tuck-ins to expand footprint.

• Maintains a robust, mostly proprietary M&A pipeline, with disciplined selection to balance leverage and accretive deals.

• Average pro forma EBITDA multiple for 60 deals over five years is about 4x, with recent creative structuring in Florida Hospice acquisition.

• De novo expansions target 15-20 new locations annually, mainly in home health, hospice, and rehab, supporting organic growth.