Kinderhook Industries acquires Enhabit Home Health & Hospice

Kinderhook Industries LLC has agreed to acquire Enhabit Inc., a publicly traded provider of home health and hospice services, for $1.1 billion. The deal underscores Kinderhook's ongoing strategy to invest in healthcare firms with strong management and a focus on patient care. This acquisition will transition Enhabit off public markets, providing it access to private capital resources and industry expertise.

Under the terms of the agreement, Enhabit shareholders will receive $13.80 per share in cash, marking a 24.4% premium on the company's closing stock price prior to the announcement. The acquisition is slated to close by the second quarter of 2026, and trading of Enhabit's shares on the Nasdaq ended on February 20. The transaction will retain Enhabit's brand identity, with operations continuing from its headquarters in Texas.

This move aims to leverage Kinderhook's capital and operational acumen to bolster Enhabit's long-term growth outside the volatility of public markets. Enhabit President and CEO Barb Jacobsmeyer emphasized the potential for enhanced investment in personnel and clinical innovation. The strategic focus will be on expanding Enhabit's footprint across its existing network of 249 home health and 117 hospice locations in 34 states, thereby improving service access.

The acquisition positions Kinderhook to deepen its investments in the growing home health sector, aligning with trends where increasing healthcare delivery shifts towards in-home services. Chris Michalik, managing director of Kinderhook, highlighted Enhabit’s established industry presence and patient-focused approach as key factors behind the acquisition. Kinderhook's long-standing track record of fostering growth in industry-leading companies is expected to benefit Enhabit’s operations.

Goldman Sachs and Jones Day advised Enhabit, while Kinderhook was advised by Guggenheim Securities LLC and Kirkland & Ellis LLP. Looking ahead, the deal will be subject to customary closing conditions and regulatory approvals. Once approved, Kinderhook will embark on implementing its strategic vision for Enhabit, shaping the competitive landscape in the home health and hospice sectors.