Private equity firms including Advent International and companies including Aveanna Healthcare Holdings have expressed interest in acquiring the home health and hospice business of Encompass Health, people familiar with the matter said.
The sources said Enhabit could be worth as much as $3bn in a sale. Aveanna provides pediatric and adult healthcare services including rehabilitation and hospice services and has a market capitalization of $745m. Were it to press on with a bid, it would likely need financial backing of top shareholders, including private equity firm Bain Capital.
A shortage of nurses has prompted many players in the U.S. home care sector to try to bulk up or exit. The regulatory environment for mergers in this space has been tough, however. Aveanna abandoned its $1.2bn acquisition of Maxim Healthcare in 2020 after the Federal Trade Commission objected to the deal.
Read more: Reuters
