Encompass Health Corp. is spinning off its home health and hospice business as an independent, publicly-traded company called Enhabit Home Health & Hospice.
The Encompass board of directors says that the separation of its inpatient rehabilitation business and the home health and hospice business into two companies will improve operational flexibility within each business, while increasing the focus of each management team on its business strategy and operations.
The spin-off, which is expected to be tax-free to Encompass Health’s shareholders, will result in Encompass Health’s shareholders owning stock in both companies. The spin-off is expected to be complete in the first half of 2022, subject to regulatory approvals.
The name, Enhabit Home Health & Hospice, was chosen because the word inhabit is intuitively linked to the home. The rebranding is expected to begin in mid-April and should be completed by the completion of the spin-off.
Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as financial advisors and Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings LLP are serving as legal advisors to Encompass Health.
Headquartered in Birmingham, Encompass Health offers facility-based and home-based patient care through its network of rehabilitation hospitals, home health agencies and hospice agencies. Its national footprint includes 145 hospitals, 251 home health locations and 96 hospice locations in 42 states and Puerto Rico.
