The leaders of residence well being and hospice firm Enhabit Inc. have agreed to promote the corporate to a personal fairness agency for roughly $700 million. Phrase of the deal for Dallas-based Enhabit comes almost two years after its board ended a strategic evaluation 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 up 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 almost 4 years in the past as a derivative from Embody Well being Corp. The corporate has a footprint spanning 34 states and comprising 249 residence well being areas and 117 hospice areas however hasn’t grown a lot lately. By the primary 9 months of final 12 months, it recorded a internet revenue of about $34 million on revenues of $790 million.
These numbers have been an enchancment from the identical interval in 2024, when President and CEO Barb Jacobsmeyer and her staff wanted to e-book a $108 million cost to put in writing down the worth of Enhabit’s residence well being division. (In late 2024, the corporate booked one other impairment cost of almost $54 million.) However the higher efficiency wasn’t sufficient to carry Enhabit’s shares (Ticker: EHAB), which spent most of 2025 underneath $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 individuals, scientific excellence and innovation with out the short-term pressures of the general public markets,” Jacobsmeyer mentioned in a press release. “We stay up for working collectively to broaden entry to our essential residence well being and hospice companies for households and their communities.”
Chris Michalik, a managing director at Kinderhook, known as Enhabit “precisely the type of group we search to assist—and the type of staff we’re excited to companion with” and added that Kinderhook’s technique will give Enhabit’s leaders long-term capital and sensible assist to “concentrate on what they do greatest.”
The Enhabit management staff will quickly endure a serious 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 vice chairman of operations at Embody earlier than transferring into the Enhabit CEO seat in mid-2021.
