01:10 PM EST, 01/21/2025 (MT Newswires) -- (Updates with stock price movement in the headline and first paragraph.)

BrightSpring Health Services ( BTSG ) shares were up more than 14%, a day after the company said it will sell Community Living division, including ResCare Community Living, to Sevita for $835 million in cash.

Post-divestiture, the company would focus on Home Health and Hospice, Personal Care, Rehabilitation Services, and Primary Care, according to a statement Monday.

The company expects the divesture would lead to operational efficiencies and a more synergistic service portfolio, boosting revenue and EBITDA growth.

Proceeds from the deal, expected to close in 2025, will primarily be used for debt reduction, improving its balance sheet and lowering interest expenses, the company said.

For 2024, BrightSpring said it expects net revenue to increase by 26.9% to 28% to $11.20 billion to $11.30 billion compared with a year earlier.

Analysts polled by FactSet expected $11.18 billion.

For 2025, which excludes the Community Living business and the effects of any future closed acquisitions, the company expects net revenue between $11.5 billion and $12 billion, a 14.4% to 19.3% increase over 2024.

Price: 21.22, Change: +2.67, Percent Change: +14.39