Kinderhook Industries acquires Enhabit Home Health & Hospice

Kinderhook Industries LLC has agreed to acquire Enhabit Inc. for $1.1 billion, marking another strategic move by private equity into the home health and hospice sector. The acquisition underscores the growing interest from investors seeking to capitalize on the rising demand for hospice care and home health services.

Enhabit, headquartered in Dallas, operates more than 249 home health and 117 hospice locations across 34 states. The company will maintain its current branding post-acquisition. The transaction is expected to close in the second quarter of 2026. This acquisition allows Enhabit to potentially leverage Kinderhook's resources and expertise, enabling further expansion and investment in clinical services without the pressures associated with public market operations. Enhabit’s President and CEO, Barb Jacobsmeyer, emphasized that operational aspects, including team structures and patient services, will remain unchanged.

The rationale for the acquisition is aligned with Kinderhook’s investment strategies, which focus on enhancing durable growth and patient care within the healthcare sector. Enhabit, a significant player ranked among the top 20 hospice providers in the United States, has shown consistent growth with $263.6 million in consolidated net service revenue, reflecting a 4% increase year-over-year. Under Jacobsmeyer, who has led Enhabit through its 2022 spin-off from Encompass Health, the company has embarked on organic growth strategies and successful acquisitions, with plans to open 10 new facilities by 2025.

For Kinderhook, this deal extends its track record of investing in strong healthcare management teams committed to quality care and growth. Hospice and home health services are increasingly seen as crucial to reducing costs and enhancing care quality, making them attractive investment opportunities.

Looking ahead, regulatory scrutiny and successful integration will be key areas of focus as the transaction progresses towards completion. As the deal advances, the market will monitor how Enhabit maneuvers within the competitive landscape and aligns its strategic goals with Kinderhook’s investment objectives.