Enhabit, Inc. to be Acquired by Kinderhook Industries in \$1.1 Billion All-Cash Deal
Key Highlights for Investors
- Acquisition Price: Enhabit, Inc. (NYSE: EHAB) will be acquired by Kinderhook Industries, LLC for \$13.80 per share in cash.
- Valuation: The transaction values Enhabit at an enterprise value of approximately \$1.1 billion.
- Premium: The offer price represents a premium of 24.4% compared to the closing stock price on February 20, 2026, and a 33.8% premium to the 60-day volume-weighted average share price ending February 20, 2026.
- Going Private: Upon completion, Enhabit’s common stock will be delisted from the New York Stock Exchange, and the company will become a privately held entity under the Enhabit name and brand.
- Board Approval: The Board of Directors of Enhabit has unanimously approved the acquisition.
- Expected Closing: The transaction is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals, and other customary closing conditions.
Details of the Transaction
The acquisition is structured as an all-cash transaction, providing immediate liquidity to Enhabit shareholders. The significant premium over recent trading levels is designed to maximize shareholder value, as emphasized by Jeffrey W. Bolton, Chairman of Enhabit’s Board. The Board, after thorough evaluation and consultation with independent advisors, expressed confidence that this deal is in the best interests of shareholders.
Barb Jacobsmeyer, President and CEO of Enhabit, highlighted that the transaction will provide Enhabit with access to Kinderhook’s resources and expertise, enabling long-term investments in people, clinical quality, and innovation, free from the short-term pressures of public markets. Enhabit will continue to operate under its existing name and brand, aiming to expand its national home health and hospice services.
Strategic Rationale and Investor Impact
Kinderhook’s leadership, including Managing Directors Chris Michalik and Matt Bubis, praised Enhabit’s patient-focused culture and its leading position in home-based care. Kinderhook brings a 20-year track record of investing in industry-leading healthcare companies, promising long-term capital and support to help Enhabit grow and enhance patient outcomes.
The deal includes committed debt and equity financing, ensuring the purchase price and related expenses will be fully funded at closing. Certain executive officers of Enhabit have entered into voting and support agreements to vote in favor of the transaction.
Shareholder Action Required: The deal requires the approval of Enhabit shareholders at a special meeting to be scheduled soon. The company will file relevant materials, including a proxy statement, with the SEC. Investors are urged to read these materials when available, as they will contain crucial information about the transaction.
Other Investor-Relevant Developments
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Earnings Update: In light of the pending acquisition, Enhabit will not conduct an earnings call or issue financial guidance for 2026. The Q4 and full-year 2025 results will be released on March 4, 2026, after market close.
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Advisors: Goldman Sachs & Co. LLC is the exclusive financial advisor to Enhabit; Jones Day is legal counsel. For Kinderhook, Guggenheim Securities, LLC is the financial advisor, and Kirkland & Ellis LLP is legal counsel.
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Business Overview: Enhabit operates 249 home health locations and 117 hospice locations in 34 states, serving patients and families nationwide.
Risks and Considerations
The transaction is subject to typical risks, including the potential for delays or failure to close due to regulatory or shareholder hurdles, possible litigation, and the risk that the transaction could be terminated, in which case Enhabit may face penalties. There could also be impacts on business relationships, retention of key personnel, and other operational disruptions during the transition period.
Investors should carefully review all SEC filings and proxy materials once available for a full understanding of the transaction and related risks.
Contact Information
Disclaimer
The information provided in this article is based on the company’s press release and related disclosures. This is not investment advice. Investors should review all official filings with the Securities and Exchange Commission (SEC) and consult their financial advisors before making any investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
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