Earlier this week, a report surfaced claiming that Advent International, Aveanna Healthcare Holdings (Nasdaq: AVAH) and at least a few other companies have “expressed interest” in acquiring Enhabit Home Health & Hospice, the $1.1 billion business currently belonging to Encompass Health Corporation (NYSE: EHC).
Executives from the Birmingham, Alabama-based Encompass Health have repeatedly stood behind a plan to spin off Enhabit into its own publicly traded entity, though they did recently signal a willingness to entertain any “value-creating strategic opportunities” that popped up during the separation process.
At this point, I believe it’s unlikely that an industry-shaping transaction will materialize because of timing, costs and the current home health operational challenges. If Encompass Health did sell Enhabit, however, it would undoubtedly have a transformational effect on the buyer, particularly in terms of added patient volume and clinical capacity.
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The post Enhabit Sale Rumors Raise Questions, Place Potential Buyers at Defining Crossroads appeared first on Home Health Care News.
