Enhabit Inc. (NYSE:EHAB) shares surged more than 22% in premarket trading Monday after the home health and hospice provider announced a definitive agreement to be acquired by private equity firm Kinderhook Industries in an all-cash deal valued at roughly $1.1 billion.
Under the terms of the agreement, Enhabit shareholders will receive $13.80 per share in cash. The offer represents a premium of about 24.4% to the company’s closing price on February 20, the last full trading session before the announcement, and a 33.8% premium to its 60-day volume-weighted average share price through the same date.
Following completion of the transaction, Enhabit’s shares will be delisted from the New York Stock Exchange and the company will operate as a privately held business, while continuing under its existing name and brand.
The acquisition received unanimous approval from Enhabit’s Board of Directors and is expected to close in the second quarter of 2026, pending shareholder approval, regulatory clearances, and customary closing conditions. Kinderhook has already secured committed financing for the purchase.
Because of the pending transaction, Enhabit said it will not host an earnings conference call or webcast and will refrain from issuing financial guidance for 2026. The company still plans to release its fourth-quarter and full-year 2025 results on March 4 after market close.
Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Enhabit, with Jones Day serving as legal counsel. Guggenheim Securities is advising Kinderhook, while Kirkland & Ellis is acting as its legal advisor.