In a major development in the U.S. healthcare sector, private equity firm Kinderhook Industries has announced that it will acquire home health and hospice provider Enhabit, Inc. in a deal valued at approximately $1.1 billion. The transaction is structured as an all-cash deal, after which Enhabit will be taken private and delisted from the stock exchange.
Shareholders to Receive 24% Premium
Under the terms of the agreement, Enhabit shareholders will receive $13.80 per share in cash, representing a premium of about 24% over the company’s recent closing price.
Following the announcement, Enhabit’s stock surged sharply in the market, reflecting investor optimism about the premium offer.
The deal is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.
About Enhabit, Inc.
Enhabit, Inc. is a U.S.-based provider of home health and hospice services, headquartered in Dallas, Texas. The company operates across multiple states, offering in-home medical care to patients who prefer treatment outside of traditional hospital settings.
Enhabit was previously part of Encompass Health before becoming an independent publicly traded company in 2022. It has since positioned itself as a key player in the growing home-based care segment.
Kinderhook’s Strategic Vision
Kinderhook Industries is a U.S. private equity firm focused on investing in middle-market companies with long-term growth potential.
Industry experts believe that home healthcare and hospice services are experiencing strong demand, driven largely by the aging U.S. population. By taking Enhabit private, Kinderhook aims to reduce short-term market pressures and allow the company to focus on long-term operational improvements and strategic expansion.
Legal Scrutiny Emerges
Following the announcement, certain law firms have initiated investigations to assess whether Enhabit’s board secured the best possible value for shareholders. However, company management maintains that the transaction is fair and in the best interests of investors.
Growing M&A Activity in Healthcare
The healthcare sector has seen a notable rise in mergers and acquisitions in recent years, particularly in home-based care services. Private equity firms have increasingly targeted this space due to its stable demand and growth potential.
Enhabit’s acquisition is considered one of the significant healthcare deals of early 2026 and may signal continued consolidation in the industry.
Outcome
The $1.1 billion acquisition of Enhabit by Kinderhook marks an important milestone in the healthcare services industry. While shareholders benefit from an immediate premium, the company will now shift its focus toward long-term growth as a private entity.
The coming months will reveal how this strategic move reshapes Enhabit’s operational and expansion plans in the competitive home healthcare market.
Source: enhabit news
