Kinderhook Closes On Enhabit Acquisition

On Friday, private equity firm Kinderhook Industries closed on its acquisition of home health and hospice provider Enhabit Inc., paying shareholders approximately $762 million.

The overall value of the deal was estimated at $1.1 billion when it was announced in February. At the time of the deal’s closing, each outstanding share of Enhabit common stock was converted into $13.80 per share in cash, and the stock was delisted from the New York Stock Exchange.

“Today marks an exciting milestone for Enhabit as we officially begin our next chapter as a privately held company,” Barb Jacobsmeyer, president and CEO of Enhabit, said in a statement. “With Kinderhook’s support, Enhabit will benefit from additional resources and expertise that will enable growth, strengthen our clinical capabilities, and expand access to high‑quality care for patients, families and the communities we serve. I want to thank all of Enhabit’s employees for their dedication and for continuing to stay grounded in our mission and values to deliver extraordinary patient care.”

Enhabit operations

Dallas-based Enhabit operates 251 home health locations and 117 hospice locations across 35 states. Following the acquisition, it has become a wholly owned subsidiary and will continue operating under its existing name and brand.

Goldman Sachs & Co. LLC served as Enhabit’s exclusive financial advisor and Jones Day served as the company’s legal counsel. Guggenheim Securities, LLC served as Kinderhook’s exclusive financial advisor and Kirkland & Ellis LLP served as the firm’s legal counsel.

Kinderhook is a middle-market private equity firm that has raised over $11 billion of committed capital. It has made over 500 investments and follow-on acquisitions since being founded in 2003. Its investments include the health care, environmental and industrial services and light manufacturing and automotive industries.

Kinderhook investment

“Enhabit’s leadership, patient‑centric culture and strong market position align closely with what we look for in a partner, and we are excited to help build on that foundation,” Chris Michalik, managing director at Kinderhook, said. “We look forward to working together so the Enhabit team can continue expanding access to care, elevating quality and delivering strong outcomes for patients and families.”

Home health has been a core focus for Kinderhook for decades, Michalik previously told Home Health Care News.

“We believe deeply in [the home health/hospice] model, and our track record proves it,” Michalik told me. “The firm has successfully invested in and scaled multiple home health platforms by emphasizing clinical quality, patient experience and clinician engagement.”

Michalik also told HHCN that Kinderhook plans to support Enhabit through clinical quality initiatives, data and analytics capabilities growth and thoughtful market expansion.

Morgan Gonzales is an award-winning reporter and associate editor of Home Health Care News. She received her bachelor's degree from the University of South Carolina and her master's from the University of Georgia. Her work has appeared in Behavioral Health Business, KFF Health News, Dallas Morning News and U.S. News and World Report. When not reporting, Morgan is usually on a trail, doing yoga, or cuddling with her cats, Ellen and Ocho.