Enhabit Agrees to $1.1 Billion Sale as Private Equity Takes Over
Event summary
- Enhabit reports Q4 2025 revenue of $270.4M, up 4.7% YoY, with Adjusted EBITDA growing 11.6% to $28M.
- Home health admissions grew 7.3% YoY, with non-Medicare admissions surging 16%.
- Hospice average daily census increased 9.9% YoY, while hospice revenue rose 10% to $63.6M.
- Enhabit agrees to be acquired by Kinderhook Industries for $13.80 per share, valuing the company at ~$1.1B.
- Company reduced bank debt by $15M in Q4 2025, bringing leverage ratio down to 3.7x.
The big picture
Enhabit's sale to Kinderhook reflects broader private equity interest in consolidating fragmented home health and hospice providers. The deal comes as the sector faces regulatory scrutiny over reimbursement models, making operational efficiency a key focus for new ownership. With $125M in debt reduced since 2023, Enhabit enters the transaction with a stronger balance sheet but must now prove its growth strategy under private equity stewardship.
What we're watching
- Integration Challenges
- How Kinderhook will manage Enhabit's operational integration amid ongoing Medicare reimbursement pressures.
- Debt Management
- Whether the reduced leverage ratio positions Enhabit for smoother transition under new ownership.
- Growth Sustainability
- The pace at which non-Medicare admissions growth can offset declines in Medicare-dependent segments.
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