Dallas-based Enhabit Inc. announced Monday that it agreed to be acquired by Kinderhook Industries, a middle market private equity firm, in a cash deal with a disclosed enterprise value of about $1.1 billion.
Jones Day’s Andy Levine, co-chair of the firm’s Corporate Practice, and Darcy White, a Partner in Atlanta, led the team advising Enhabit. Kirkland & Ellis provided counsel to Kinderhook with a mostly New York-based team. Daisy Darvall, a partner working from New York and Austin, and associates David Yaka and Nathan Abernathy advised from Austin.
“Over the last four years, Enhabit has strengthened its role as a leading national provider of home health and hospice care, and this agreement is a terrific outcome for our stockholders, clinicians, caregivers, patients and their families,” President and CEO Barb Jacobsmeyer said. “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.”
Kinderhook Industries agreed to pay Enhabit stockholders $13.80 a share in cash, which represents a premium of about 24.4 percent to the company’s closing price of $11.08 on Friday, Feb. 20. Upon close, which is expected by June 30, Enhabit’s shares will delist from the NYSE.
Kinderhook Managing Director Chris Michalik said the New York PE firm has “long admired Enhabit’s leadership, patient-centric culture and strong market position in home-based care.”
“Our growth-oriented investment strategy provides our management teams with long-term capital and practical support so they can focus on what they do best – running a great company that expands access to care, elevates quality, and delivers better outcomes for the patients and families they serve,” Michalik said. “Enhabit exemplifies exactly the kind of organization we seek to support.”
Enhabit plans to report fourth quarter and fiscal 2025 results on March 4, but the company will not be conducting a conference call nor issuing guidance for 2026, due to this take-private transaction with Kinderhook Industries.
Goldman Sachs is Enhabit’s exclusive financial advisor, and Guggenheim Securities advises Kinderhook.