Private equity investment in home health and hospice continues to accelerate, with Kinderhook Industries agreeing to acquire Enhabit in an all-cash transaction valued at approximately $1.1 billion. Under the deal, Enhabit shareholders will receive $13.80 per share, representing a roughly 24% premium to the company’s most recent closing price. Once the transaction closes—expected in the second quarter of 2026—Enhabit will delist from the New York Stock Exchange and operate as a private company.
Enhabit operates 249 home health locations and 117 hospice sites across 34 states, and became an independent public company in 2022 after spinning off from Encompass Health. Company leadership said the board determined the deal maximizes shareholder value and positions the organization for long-term growth without the short-term pressures of public markets. Kinderhook executives emphasized their intent to provide capital and operational support to expand access to care and strengthen clinical performance.
The acquisition reflects broader trends in healthcare M&A. In 2025, there were over 1,000 private equity–backed healthcare deals in the U.S., including dozens involving home health and hospice providers. Research published in late 2025 found that the majority of home health agency acquisitions over the past two decades were led by middle-market and megafund private equity firms. Recent transactions, including acquisitions by Waud Capital Partners and Bain Capital-backed Aveanna Healthcare, underscore continued investor interest in home-based care services amid growing demand and shifting care models.
Click here to read the original news story.