Jan 20 (Reuters) - BrightSpring Health Services ( BTSG )

said on Monday it would divest its community-based healthcare

division to healthcare services provider Sevita for $835 million

in a move to streamline its business and reduce debt.

BrightSpring, which provides home health, rehab and hospice

care, said the divestiture will help improve operational

efficiency and increase capital for growth. The deal is expected

to generate $715 million in after-tax cash proceeds that will be

used to pay down debt.

ResCare Community Living, which is being divested, was

expected to generate about $1.2 billion in revenue in 2024,

according to the company, and serves approximately 14,000

clients with the help of 13,500 employees.

Kentucky-based BrightSpring went public in January last year

with a valuation of $2.5 billion, and backing from private

equity firm KKR & Co.

The transaction is expected to close in 2025, subject to

regulatory approvals.