Enhabit (NYSE: EHAB), a Dallas-based national home health and hospice provider, has agreed to be acquired by Kinderhook Industries, a New York City middle market private equity firm, in an all-cash transaction valued at around $1.1 billion.

“Following a thorough evaluation and extensive deliberations in consultation with our independent advisors, we’re pleased to reach this agreement with Kinderhook,” Jeffrey W. Bolton, chairman of Enhabit’s board of directors, said in a statement. “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.”

The acquisition was unanimously approved by Enhabit’s board and is expected to close in the second quarter of 2026, subject to the receipt of approval of Enhabit stockholders and regulatory approvals, and the satisfaction of other customary closing conditions.

In 2022, Enhabit Home Health and Hospice spun out of its parent company, Encompass Health Corp., and began trading on the New York Stock Exchange after reaching more than $1 billion in net revenue the year before.

Operating locations in 34 states

With 249 home health locations and 117 hospice locations in 34 states, Enhabit said it “leverages advanced technology and compassionate teams to deliver extraordinary patient care,” supporting patients and their families where they are most comfortable. 

Barb Jacobsmeyer, president and CEO of Enhabit, said that over the last four years, her company “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,” she added in a statement, “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.”

“We look forward to working together to expand access to our critical home health and hospice services for families and their communities,” Jacobsmeyer said.

Taking Enhabit private

Under the terms of the agreement, Enhabit stockholders will receive $13.80 per share in cash, which represents a premium of approximately 24.4% to the company’s closing stock price on February 20, 2026, the last full trading day prior to the announcement of the transaction, and a 33.8% premium to the company’s 60-day volume-weighted average share price for the period ending February 20.

Upon completion of the transaction, Enhabit will become a private company, no longer listing its common stock on the New York Stock Exchange. The company will continue operating under the Enhabit name and brand following the close of the transaction.

Chris Michalik, managing director at Kinderhook said, “We have long admired Enhabit’s leadership, patient-centric culture and strong market position in home-based care. Kinderhook has a successful 20-year track record of investing in industry-leading companies and partnering with world-class management teams.”

Michalik called Enhabit an ideal fit for Kinderhook.

“Our growth-oriented investment strategy provides our management teams with long-term capital and practical support so they can focus on what they do best—running a great company that expands access to care, elevates quality, and delivers better outcomes for the patients and families they serve,” he said. “Enhabit exemplifies exactly the kind of organization we seek to support—and the kind of team we are excited to partner with.”

Matt Bubis, managing director at Kinderhook added that, thanks to its exceptional care teams and strong leadership, “Enhabit has built a reputation for excellence across the healthcare industry. As a supportive partner, our role is to grow and foster the great work they’re already doing and to help remove barriers so their teams can stay focused on patients.”

“For us, this investment is simple,” Bubis added. “It’s about backing a great organization and giving it the room and resources to succeed for the long run.”

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