Private equity firm Kinderhook Industries has agreed to acquire home health and hospice provider Enhabit Inc. (NYSE: EHAB) for approximately $1.1 billion in an all-cash deal.
The deal, announced Monday, will take Enhabit private, with its shares set to cease trading upon the transaction’s close.
“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,” Barb Jacobsmeyer, president and CEO of Enhabit, said in a statement. “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.”
The deal is expected to close in the second quarter of 2026.
Enhabit’s stockholders will receive $13.80 per share in cash as part of the deal, which represents a premium of approximately 24.4% to Enhabit’s closing stock price on Feb. 20, the last full trading day before the deal was announced, and a 33.8% premium to the company’s 60-day volume-weighted average share price for the period ending on Feb. 20.
Jeffrey Bolton, chairman of Enhabit’s board of directors, said that Enhabit’s board evaluated its current state of business, outlook and opportunities before reaching the agreement and that the board is “confident” that the transaction maximizes stockholder value.
Kinderhook is a middle-market private equity firm with investments in the health care, environmental and industrial services and light manufacturing and automotive industries. It focuses on businesses with “defensible niche market positioning.” The firm has raised over $10 billion of committed capital. Its health care portfolio includes value-based primary care physician company Better Health Group, health care and pharmacy provider Avita Care Solutions and value-based integrated health care provider AbsoluteCare.
“Thanks to its exceptional care teams and strong leadership, Enhabit has built a reputation for excellence across the health care industry,” Matt Bubis, managing director at Kinderhook, said. “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.”
Dallas-based Enhabit operates 249 home health locations and 117 hospice locations across 34 states. It will retain its name and brand following the close of the Kinderhook deal, according to the company.
The news comes amid a leadership transition at the company. Enhabit’s CEO, Jacobsmeyer, has previously announced her plan to step down from her role in July 2026, or upon the appointment of her successor.
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