Home‑health provider Enhabit to go private in $1.1 billion deal with Kinderhook

By Kamal Choudhury

Feb 23 (Reuters) - Enhabit EHAB.N said on Monday private equity firm Kinderhook Industries will buy the home-health services provider and take it private in a deal worth about $1.1 billion.

There has been growing demand for home‑based care in the United States, as the population ages and more patients choose to receive treatment outside hospitals.

Shares of Enhabit, which gained about 19% in 2025, jumped more than 22% in early morning trading. The company had a market value of roughly $561 million, as of last close.

Under the deal, Enhabit shareholders will receive $13.80 per share in cash, a premium of about 24% to the company's last closing price.

The offer values Enhabit at about 10 times its expected 2026 earnings, according to Oppenheimer analyst Michael Wiederhorn - a discount to peers Pennant Group PNTG.O, Addus HomeCare ADUS.O and Chemed CHE.N, which trade at an average of about 13 times their earnings.

"Shareholders will get a short-term bump in value from the deal but could be missing out on an attractive long-term opportunity from home health, which is seeing improved reimbursement and strong organic growth," Wiederhorn said.

The Dallas‑based company will keep its name and continue operating its 249 home health locations and 117 hospice locations across 34 U.S. states.

"This is a good outcome for the company that has experienced flat to down earnings for nearly 5 years along with ongoing reimbursement challenges (PDGM behavioral adjustment cuts) and payer pressures," said Leerink Partners analyst.

Enhabit became an independent publicly traded company in 2022 after spinning off from Encompass Health Corporation EHC.N.

The deal is expected to close in the second quarter of 2026. Enhabit said its shares will be delisted from the New York Stock Exchange when the transaction closes.

Goldman Sachs advised Enhabit on the deal, while Guggenheim Securities advised Kinderhook.