Enhabit has entered into a definitive agreement to be acquired by Kinderhook Industries in an all-cash transaction valued at approximately $1.1 billion in total enterprise value.
Under the terms of the agreement, Enhabit stockholders will receive $13.80 per share in cash. The offer 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, and a 33.8% premium to the company’s 60-day volume-weighted average share price for the period ended on that date.
Upon completion of the transaction, Enhabit’s common stock will no longer be listed on the New York Stock Exchange, and the company will become privately held. Enhabit will continue operating under its existing name and brand following the close of the deal.
The acquisition was unanimously approved by Enhabit’s Board of Directors and is expected to close in the second quarter of 2026, subject to stockholder approval, regulatory approvals, and other customary closing conditions. Certain executive officers have entered into customary voting and support agreements in favor of the transaction. Kinderhook has secured committed debt and equity financing sufficient to fund the purchase price and related fees and expenses.
In light of the pending transaction, Enhabit will not conduct an earnings conference call or webcast and will not issue financial guidance for 2026. The company expects to release its fourth quarter and full-year 2025 earnings results on March 4, 2026, after market close.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Enhabit, with Jones Day as legal counsel and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor. Guggenheim Securities, LLC is serving as exclusive financial advisor to Kinderhook, with Kirkland & Ellis LLP as legal counsel.
Founded in 2003, Kinderhook has raised more than $10 billion of committed capital and completed over 500 investments and follow-on acquisitions. The firm focuses on middle market businesses in healthcare services, environmental and industrial services, and light manufacturing and automotive sectors.
Enhabit is a national home health and hospice provider with a footprint spanning 249 home health locations and 117 hospice locations across 34 states. The company leverages technology-enabled clinical support and care teams to deliver in-home patient services.
KEY QUOTES
“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.”
Jeffrey W. Bolton, Chairman of Enhabit’s Board of Directors
“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. We look forward to working together to expand access to our critical home health and hospice services for families and their communities.”
Barb Jacobsmeyer, President and Chief Executive Officer of Enhabit
“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. 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. Enhabit exemplifies exactly the kind of organization we seek to support – and the kind of team we are excited to partner with.” “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 – it’s about backing a great organization and giving it the room and resources to succeed for the long run.”
Chris Michalik, Managing Director at Kinderhook; Matt Bubis, Managing Director at Kinderhook
