US private equity firm Kinderhook Industries has agreed to acquire home-health services provider Enhabit in a transaction valuing the business at about $1.1bn, according to a report by Reuters.
Under the terms of the deal, Enhabit shareholders will receive $13.80 per share in cash, representing a premium of around 24% to its last closing price. The offer implies a valuation of roughly 10x Enhabit’s expected 2026 earnings, below listed peers including Addus HomeCare and Chemed, an analyst at Oppenheimer told Reuters.
Demand for home-based care in the US continues to rise as the population ages and care increasingly shifts away from hospitals. Enhabit operates 249 home health locations and 117 hospice locations across 34 states, and will retain its name following the transaction.
Enhabit was spun out of Encompass Health in 2022. The deal is expected to close in the second quarter of 2026, after which Enhabit’s shares will be delisted from the New York Stock Exchange. Goldman Sachs advised Enhabit, while Guggenheim Securities acted for Kinderhook.
