Enhabit Inc., a leading U.S. provider of home health and hospice services, has agreed to be acquired by Kinderhook Industries in an all-cash deal valued at approximately $1.1 billion. The transaction will take Enhabit private, allowing the company to focus on long-term growth strategies, operational improvements, and investments in home-based care amid a rapidly evolving post-acute landscape.
Glimpse:
Kinderhook Industries will acquire all outstanding shares of Enhabit common stock for $9.75 per share in cash, representing a 31% premium to the 30-day volume-weighted average price and a 26% premium to the closing price prior to the announcement. The deal includes a 45-day “go-shop” period during which Enhabit can solicit alternative proposals. Upon closing, Enhabit will become a privately held company, with existing management expected to remain in place to execute the company’s strategic plan focused on organic growth, margin expansion, and enhanced patient outcomes in home health and hospice.
Enhabit Inc. (NYSE: EHAB), one of the largest publicly traded home health and hospice providers in the United States, announced on February 26, 2026, that it has entered into a definitive agreement to be acquired by Kinderhook Industries, a New York-based private equity firm specializing in healthcare services. The transaction values Enhabit at approximately $1.1 billion and will take the company private, ending its tenure as a publicly listed entity since its spin-off from Encompass Health in 2022.
Under the terms of the agreement, Kinderhook, through an affiliate, will acquire all outstanding shares of Enhabit common stock for $9.75 per share in cash. This price represents a 31% premium to Enhabit’s 30-day volume-weighted average trading price and a 26% premium to the closing price on February 25, 2026, the last trading day before the announcement. The transaction has been unanimously approved by Enhabit’s Board of Directors following the recommendation of a special committee of independent directors.
The agreement includes a 45-day “go-shop” period during which Enhabit and its advisors are permitted to actively solicit and consider alternative acquisition proposals from third parties. If a superior proposal emerges and the board determines it is more favorable, Enhabit may terminate the Kinderhook agreement upon payment of a termination fee. Kinderhook has committed to a $100 million reverse breakup fee if the deal fails to close under certain circumstances.
Enhabit operates more than 250 home health and hospice locations across 34 states, serving over 170,000 patients annually with skilled nursing, therapy, hospice, and personal care services. The company has faced challenges in recent years, including reimbursement pressures from Medicare, rising labor costs, and post-spin-off operational complexities. Going private under Kinderhook will provide Enhabit with greater flexibility to invest in technology, workforce development, geographic expansion, and service diversification without the constraints of quarterly public reporting.
Kinderhook, which manages over $5 billion in assets and has a strong track record in healthcare services (including previous investments in behavioral health, home care, and post-acute providers), sees significant opportunity to support Enhabit’s long-term growth. The firm plans to work closely with existing management to enhance clinical quality, improve operational efficiency, strengthen payer relationships, and capitalize on the structural tailwinds driving demand for home-based care, including an aging population, preference for aging in place, and continued Medicare reimbursement shifts toward value-based models.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including approval by Enhabit shareholders, regulatory clearances, and satisfaction of other standard conditions. Enhabit’s board has recommended that shareholders vote in favor of the transaction.
Following the announcement, Enhabit’s stock price rose sharply in pre-market trading, reflecting investor approval of the premium offer and the opportunity to transition to private ownership. The deal underscores continued private equity interest in home health and hospice assets, which remain attractive despite reimbursement headwinds due to their essential role in the post-acute continuum and favorable demographic trends.
Enhabit will continue to operate under its current name and brand, with no immediate changes planned to leadership, staff, or clinical operations as the company transitions to private ownership.
“This transaction reflects the strong value inherent in Enhabit’s platform and provides us with the flexibility to invest for long-term growth while delivering high-quality care to patients in the comfort of their homes.”
By
HB Team
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