Enhabit stock soars on $1.1 billion acquisition deal

Investing.com – Enhabit Inc. (NYSE:EHAB) stock surged 22.5% in pre-market trading on Monday after the company announced it had reached a definitive acquisition agreement with mid-market private equity firm Kinderhook Industries. The all-cash deal is valued at approximately $1.1 billion.

Under the terms of the agreement, Enhabit shareholders will receive $13.80 in cash per share, representing a premium of about 24.4% over the company’s closing price on February 20 (the last full trading day before the announcement). The deal also reflects a 33.8% premium over the company’s 60-day volume-weighted average price as of February 20.

Upon completion of the transaction, Enhabit’s common stock will no longer be listed on the New York Stock Exchange, and the company will become privately held. Enhabit will continue to operate under its current name and brand after the deal closes.

The acquisition has been unanimously approved by Enhabit’s board of directors and is expected to close in the second quarter of 2026, subject to shareholder approval, regulatory approvals, and other customary closing conditions. Kinderhook has secured committed financing for the transaction.

In light of the announced deal, Enhabit will not hold earnings calls or webcasts, nor will it issue financial guidance for 2026. The company’s Q4 2025 and full-year 2025 financial results are scheduled to be released after the market closes on March 4.

Goldman Sachs served as exclusive financial advisor to Enhabit, with Jones Day as legal counsel. Guggenheim Securities served as exclusive financial advisor to Kinderhook, with Kirkland & Ellis as legal counsel.

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