Private equity firms continue to make big investments in home health and hospice care.
In the latest deal, Kinderhook Industries has agreed to buy Enhabit in an all-cash transaction valued at approximately $1.1 billion.
Under the terms of the agreement, Enhabit stockholders will receive $13.80 per share in cash, which represents a premium of approximately 24.4% to the company’s last closing stock price, according to the company's press release. Upon completion of the transaction, the company's common stock will no longer be listed on the New York Stock Exchange, and Enhabit will become a private company.
The acquisition is expected to close in the second quarter of 2026.
Shares of Enhabit, which gained about 19% in 2025, jumped more than 22% in early morning trading. The company had a market value of roughly $561 million as of last close, Reuters reported.
Enhabit has a nationwide footprint spanning 249 home health locations and 117 hospice locations across 34 states. The company became an independent publicly traded company in 2022 after spinning off from inpatient rehabilitation and home care company Encompass Health.
“Following a thorough evaluation and extensive deliberations in consultation with our independent advisors, we are pleased to reach this agreement with Kinderhook. The Board evaluated the current state of the business, its outlook and opportunities, and is confident this transaction maximizes value for our stockholders and is in their best interest," Jeffrey Bolton, chairman of Enhabit’s board of directors, said in a statement.
Under Kinderhook’s ownership, Enhabit will benefit from additional resources and expertise that will support long-term investments in the company's staff, clinical excellence and innovation "without the short-term pressures of the public markets," Barb Jacobsmeyer, president and CEO of Enhabit, said.
Chris Michalik, managing director at Kinderhook, said, “We have long admired Enhabit’s leadership, patient-centric culture and strong market position in home-based care. Kinderhook has a successful 20-year track record of investing in industry-leading companies and partnering with world-class management teams. Our growth-oriented investment strategy provides our management teams with long-term capital and practical support so they can focus on what they do best—running a great company that expands access to care, elevates quality, and delivers better outcomes for the patients and families they serve. Enhabit exemplifies exactly the kind of organization we seek to support—and the kind of team we are excited to partner with.”
In 2025, there were 1,029 PE-backed healthcare deals in the U.S., with 39 deals involving home health and hospice companies, according to data from nonprofit watchdog organization Private Equity Stakeholder Project (PESP).
In November 2025, JAMA Health Forum published research showing that of 749 home health agencies identified from 2006 to 2024, 520 were acquired by middle-market PE firms and 143 by megafund PE firms. While PE acquisitions of home health agencies peaked in 2021, the PESP said it has tracked "consistent activity in this space in recent years, including in 2025."
In 2024, Waud Capital Partners, a middle-market private equity firm, acquired Senior Helpers, a company that offers home care and wellness offerings for seniors. Waud Capital bought Senior Helpers from Advocate Health. In April, Waud Capital created a new home health platform company, Altocare, after it acquired MedTec Healthcare, a provider of in-home care and adult day services, and its merger with Senior Helpers.
Also last year, Aveanna Healthcare, majority-owned by Bain Capital and J.H. Whitney, acquired Thrive Skilled Pediatric Care. Aveanna is the largest provider of private duty nursing services in the U.S., and the deal grew Aveanna’s already expansive footprint.