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 practically two years after its board ended a strategic evaluate 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 have to approve the proposed sale, which each events count on to finish by the center of the 12 months.
Enhabit was born practically 4 years in the past as a by-product 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 web 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 workforce wanted to guide 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 practically $54 million.) However the higher efficiency wasn’t sufficient to elevate 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.
“Below Kinderhook’s possession, Enhabit will profit from extra sources and experience that may assist long-term investments in our individuals, scientific excellence and innovation with out the short-term pressures of the general public markets,” Jacobsmeyer stated in a press release. “We stay up for working collectively to develop entry to our important 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 workforce we’re excited to accomplice with” and added that Kinderhook’s technique will give Enhabit’s leaders long-term capital and sensible assist to “give attention to what they do finest.”
The Enhabit management workforce will quickly endure a significant change: As a part of a plan introduced final August, Jacobsmeyer is making ready to step down from her roles in July or when her successor is employed. Jacobsmeyer, 60, was the chief vp of operations at Embody earlier than transferring into the Enhabit CEO seat in mid-2021.
