Brookdale Senior Living reportedly is looking to unload its home health and hospice segment, according to an article Monday in PE Hub. Sources said to be familiar with the process noted that the move would help the firm improve its liquidity, adding that Bank of America is providing Brookdale with sell-side financial advice as the process progresses.
The divestiture ultimately could produce a range of outcomes, including a sale to a private-equity backed buyer, according to the media outlet. Sources also told PE Hub that the move would be accretive and allow Brentwood, TN-based Brookdale to pay down debt.
A Brookdale spokeswoman declined to comment to McKnight’s Business Daily on the news report Monday.
Brookdale’s Health Care Services segment, which includes home care and hospice, produced almost $450 million in revenue in 2019, according to Brookdale financial reports. Third-quarter revenue in the segment, however, although flat compared with the second quarter, was down 20% year over year, Brookdale President and CEO Lucinda “Cindy” Baier said on the company’s third-quarter earnings call in November. The company estimated that the impact of COVID-19 resulted in $15 million of lost revenue for the Health Care Services business.
