Enhabit, Inc. (NYSE: EHAB), a national provider of home health and hospice services, will be acquired by private‑equity firm Kinderhook Industries, LLC in an all‑cash transaction valued at approximately $1.1 billion. The deal offers $13.80 in cash per share, a 24.4% premium to Enhabit’s closing price on February 20, 2026 and a 33.8% premium to its 60‑day volume‑weighted average price. The transaction is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals, and will result in Enhabit’s common stock being delisted from the New York Stock Exchange.
The acquisition allows Enhabit to continue operating under its existing brand while gaining access to Kinderhook’s capital and operational expertise. Board Chairman Jeffrey W. Bolton said, "Following a thorough evaluation and extensive deliberations in consultation with our independent advisors, we are pleased to reach this agreement with Kinderhook. The Board evaluated the current state of the business, its outlook and opportunities, and is confident this transaction maximizes value for our stockholders and is in their best interest." President and CEO Barb Jacobsmeyer added, "Over the last four years, Enhabit has strengthened its role as a leading national provider of home health and hospice care, and this agreement is a terrific outcome for our stockholders, clinicians, caregivers, patients and their families. Under Kinderhook's ownership, Enhabit will benefit from additional resources and expertise that will support long‑term investments in our people, clinical excellence and innovation without the short‑term pressures of the public markets."
Kinderhook Industries focuses on mid‑market businesses in healthcare services, environmental & industrial services, and light manufacturing & automotive sectors. Enhabit became an independent, publicly traded company in 2022 after spinning off from Encompass Health, and the deal aligns with Kinderhook’s strategy of partnering with strong management teams to build market leaders.
The transaction comes amid a favorable regulatory environment, including a more favorable final Medicare rule that reduced the 2026 rate cut to 1.3%. Enhabit has also strengthened its balance sheet, cutting bank debt by $15 million in Q3 2025 and achieving a leverage ratio of 3.9x.
Following the announcement, analysts from Truist, Leerink, TD Cowen and UBS upgraded Enhabit and raised price targets to $13.80, reflecting confidence in the company’s operational model and the value added by Kinderhook’s investment.
The deal will take Enhabit private, removing the pressures of the public markets and providing shareholders with a substantial cash payout. The transaction positions Enhabit for long‑term growth, leveraging Kinderhook’s resources to support continued investment in people, clinical excellence and innovation.
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