Enhabit Inc. (NYSE:EHAB) said it has reached a definitive agreement to be acquired by Kinderhook Industries in an all-cash transaction valued at approximately $1.1 billion. The announcement sent Enhabit stock up 22.5% in premarket trading on Monday.
Under the terms of the agreement, Enhabit common stockholders will receive $13.80 per share in cash. That per-share price represents a premium of about 24.4% compared with Enhabit’s closing price on February 20, the last full trading day before the deal was announced. The purchase price also equates to a roughly 33.8% premium to the company’s 60-day volume-weighted average price ending on February 20.
If the transaction is completed, Enhabit’s common shares will be delisted from the New York Stock Exchange and the company will continue as a privately held entity. Management indicated the business will retain the Enhabit name and brand following the close.
The agreement received unanimous approval from Enhabit’s Board of Directors. The parties expect the acquisition to close in the second quarter of 2026, subject to approval by Enhabit stockholders, required regulatory clearances, and other customary closing conditions. Kinderhook has secured committed financing to fund the transaction.
In response to the pending acquisition, Enhabit said it will not hold an earnings conference call or webcast, and it will not provide financial guidance for 2026. The company plans to release fourth-quarter and full fiscal year 2025 results on March 4 after the market close.
Advisors to the transaction are specified in the agreement. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Enhabit, with Jones Day serving as legal counsel. Kinderhook is advised by Guggenheim Securities as exclusive financial advisor and Kirkland & Ellis as legal counsel.
This transaction transfers control of Enhabit to a middle-market private equity firm and moves the company off public markets pending customary approvals. Shareholders will receive a fixed cash price per share, while regulatory and shareholder approvals remain outstanding.