Enhabit Home Health & Hospice Confirms Exploration of Strategic Alternatives to Enhance Stockholder Value
August 23 2023 - 4:51PM
Business Wire
Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice
care provider, today announced that it has satisfied the conditions
in its Tax Matters Agreement (“TMA”), dated June 30, 2022, with
Encompass Health Corporation to conduct a review of strategic
alternatives and has formally initiated such process. As part of
this process, the board of directors will consider a wide range of
options for the Company including, among other things, a potential
sale, merger or other strategic transaction. Certain transactions
involving the company remain subject to additional conditions in
the TMA, including securing an additional tax opinion with respect
to the specific transaction, satisfactory to Encompass Health in
its sole and absolute discretion, that such proposed transaction
would not jeopardize the tax-free treatment of the spin-off of
Enhabit.
The Company issued the following statement:
“Enhabit is a leader in a valuable industry, providing a better
way to care where patients prefer to receive their care. The
Enhabit board and management team are aligned in their belief that
the best way to enhance value for stockholders is to
comprehensively review the Company’s strategic alternatives,
including a potential sale of Enhabit. We will pursue the pathway
that enhances value for our stockholders and ensures we can
continue to deliver exceptional care to our patients.”
There can be no assurance the Company’s strategic alternatives
process will result in Enhabit pursuing any particular transaction
or other strategic outcome or that any such transaction will
satisfy the remaining conditions in the TMA. The Company has not
set a timetable for completion of this process, and it does not
intend to disclose further developments unless and until it
determines further disclosure is appropriate or necessary.
Advisor
Goldman Sachs & Co. LLC is serving as financial advisor to
Enhabit.
About Enhabit Home Health & Hospice
Enhabit Home Health & Hospice (Enhabit, Inc.) is a leading
national home health and hospice provider working to expand what’s
possible for patient care in the home. Enhabit's team of clinicians
supports patients and their families where they are most
comfortable, with a nationwide footprint spanning 255 home health
locations and 108 hospice locations across 34 states. Enhabit
leverages advanced technology and compassionate teams to deliver
extraordinary patient care. For more information, visit
ehab.com.
Forward-looking statements
Statements contained in this press release which are not
historical facts, such as those relating to our initiation of a
strategic alternatives review process focused on enhancing
shareholder value, our consideration of potential strategic
transactions, including a potential sale, merger or other strategic
transaction, and other future events are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. All forward-looking information speaks only as of the date
hereof, and Enhabit undertakes no duty to publicly update or revise
such forward-looking information, whether as a result of new
information, future events, or otherwise. Such forward-looking
statements are based upon current information and involve a number
of risks and uncertainties. Actual events or results may differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors. While it is
impossible to identify all such factors, factors which could cause
actual events or results to differ materially from our present
expectations include, but are not limited to, the outcome of our
strategic alternatives review, the volatility and uncertainty in
the capital markets for home health and hospice companies and the
availability of financing to any potential strategic partner, the
availability of suitable third parties with which to conduct any
strategic transaction, our ability to satisfy the remaining
conditions under the TMA, and if a definitive agreement for a
transaction is signed with another party, whether the conditions to
closing are satisfied, including any necessary regulatory or other
approvals. Our Form 10-K and subsequent quarterly reports on Form
10-Q, each of which can be found on the Company’s website at
http://investors.ehab.com and the SEC’s website at www.sec.gov,
discuss other risks and factors that could cause actual results to
differ materially from those expressed or implied by any
forward-looking statement in this press release. We urge you to
consider all of the risks, uncertainties and factors identified
above or discussed in such reports carefully in evaluating the
forward-looking statements in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230823702650/en/
Investor contact Jordan Loyd investorrelations@ehab.com
469-860-6061
Media contact Andy Brimmer / Adam Pollack Joele Frank,
Wilkinson Brimmer Katcher 212-355-4449
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