Enhabit begins exploration of strategic alternatives

Enhabit (EHAB) has satisfied the conditions in its Tax Matters Agreement – TMA – dated June 30, 2022, with Encompass Health (EHC) 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 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.