Inhabit sales rumours, raise questions, put potential buyers at crossroads

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 owned to Encompass Health Corporation (NYSE: EHC).

Executives at Encompass Health, based in Birmingham, Alabama, have repeatedly backed a plan to spin off Enhabit into its own publicly traded entity, though they recently signaled their willingness to seize all “strategic opportunities.” value creators” that arose during the separation. to treat.

At this point, I believe an industry-shaping transaction is unlikely to materialize due to the current timeline, costs, and operational challenges in home healthcare. However, if Encompass Health were to sell Enhabit, it would undoubtedly have a transformational effect on the buyer, especially in terms of additional patient volume and clinical capacity.