Birmingham, Ala.-based HealthSouth, an inpatient rehabilitation hospital operator, has signed a definitive agreement to acquire EHHI Holdings, which owns Dallas-based Encompass Home Health and Hospice, for $750 million.
The transaction, which has been approved by both companies' boards of directors, is subject to regulatory approvals and is expected to close before the end of the year.
"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," said Jay Grinney, president and CEO of HealthSouth. "Today we are very pleased to announce the acquisition of a company we believe fits these requirements."
Encompass provides Medicare-focused home health services across 13 states.
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