US-based inpatient rehabilitation hospitals operator HealthSouth has signed an agreement to acquire EHHI Holdings that owns Encompass Home Health and Hospice for $750m.
Established in 1998, Encompass provides medicare focused home health services in the US, and is currently owned by healthcare-focused private investment firm Cressey & Company.
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With 5,000 employees, Encompass operates in 140 locations across 13 states in the US.
HealthSouth president Jay Grinney said: "One of our stated strategic objectives has been to expand into home health, assuming we were able to acquire a high-quality, scalable asset that was capable of consolidating the highly fragmented home health industry.
"Encompass’s exceptional management team, strong corporate culture, and track record of successfully providing high-quality, cost-effective home care services has positioned the company as a leader in the home health industry."
Subject to certain customary closing conditions and regulatory approvals, the transaction is expected to be completed by the end of 2014.
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By GlobalDataJP Morgan Securities is serving as exclusive financial advisor to HealthSouth, while Skadden, Arps, Slate, Meagher & Flom is acting as legal advisor.
Encompass CEO April Anthony said: "We are thrilled to be joining HealthSouth and are confident that our mission of delivering a better way to care for our employees, patients, referral sources and all of our stakeholders will align well with HealthSouth’s mission, and allow our merged organisations to continue to provide high-quality post-acute services to the communities we are privileged to serve."
HealthSouth operates inpatient rehabilitation hospitals, outpatient rehabilitation satellite clinics and home health agencies in 28 states across the country.
