The leaders of dwelling well being and hospice firm Enhabit Inc. have agreed to promote the corporate to a non-public fairness agency for roughly $700 million. Phrase of the deal for Dallas-based Enhabit comes practically two years after its board ended a strategic assessment of the corporate’s future and determined to stay unbiased.
The settlement between Enhabit and Kinderhook Industries LLC requires the New York-based funding agency to pay $13.80 in money for Enhabit’s shares whereas additionally taking over the corporate’s debt, which totaled about $440 million as of Sept. 30. Shareholders must approve the proposed sale, which each events anticipate to finish by the center of the 12 months.
Enhabit was born practically 4 years in the past as a derivative from Embody Well being Corp. The corporate has a footprint spanning 34 states and comprising 249 dwelling well being places and 117 hospice places however hasn’t grown a lot lately. By means of the primary 9 months of final 12 months, it recorded a web revenue of about $34 million on revenues of $790 million.
These numbers had been an enchancment from the identical interval in 2024, when President and CEO Barb Jacobsmeyer and her group wanted to e-book a $108 million cost to put in writing down the worth of Enhabit’s dwelling well being division. (In late 2024, the corporate booked one other impairment cost of practically $54 million.) However the higher efficiency wasn’t sufficient to raise Enhabit’s shares (Ticker: EHAB), which spent most of 2025 beneath $10 after having been valued at $25 when Embody arrange Enhabit as an unbiased firm.
“Beneath Kinderhook’s possession, Enhabit will profit from further sources and experience that can assist long-term investments in our folks, medical excellence and innovation with out the short-term pressures of the general public markets,” Jacobsmeyer stated in an announcement. “We sit up for working collectively to develop entry to our crucial dwelling well being and hospice providers for households and their communities.”
Chris Michalik, a managing director at Kinderhook, known as Enhabit “precisely the form of group we search to assist—and the form of group we’re excited to companion with” and added that Kinderhook’s technique will give Enhabit’s leaders long-term capital and sensible assist to “deal with what they do finest.”
The Enhabit management group will quickly endure a significant change: As a part of a plan introduced final August, Jacobsmeyer is getting ready to step down from her roles in July or when her successor is employed. Jacobsmeyer, 60, was the manager vp of operations at Embody earlier than shifting into the Enhabit CEO seat in mid-2021.