Private equity firm to acquire home health, hospice company in $1.1B deal — 5 things to know

Enhabit, a home health and hospice provider with 249 home health locations and 117 hospice locations across 34 states, has entered into a definitive agreement to be acquired by private equity firm Kinderhook Industries in an all-cash transaction valued at about $1.1 billion.

Five things to know:

1. Under the terms of the agreement, Enhabit stockholders will receive $13.80 per share in cash, representing a premium of about 24.4% to the company’s closing stock price Feb. 20, the last full trading day before the transaction was announced. The offer also reflects a 33.8% premium to Enhabit’s 60-day volume-weighted average share price for the period ended Feb. 20.

2. 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.

3. The acquisition was unanimously approved by Enhabit’s board of directors and is expected to close in the second quarter, subject to stockholder approval, regulatory approvals and other closing conditions. Certain Enhabit executive officers have entered into voting and support agreements to vote in favor of the transaction at a special meeting of stockholders.

4. Barb Jacobsmeyer, president and CEO of Enhabit, said the transaction positions the company for long-term growth. “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,” Ms. Jacobsmeyer said in a Feb. 23 news release. 

5. New York City-based Kinderhook focuses on middle market businesses in healthcare services, environmental and industrial services, and light manufacturing and automotive sectors. The firm has raised more than $10 billion in committed capital and has completed more than 500 investments and follow-on acquisitions.

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