|
 Encompass, which provides post-acute healthcare services, said in
October that it planned to spin off the business, called Enhabit, in
the first half of 2022. Last month the Birmingham, Alabama-based
company said it was open to the separation happening through a sale
or a merger.
The sources said Enhabit could be worth as much as $3 billion in a
sale. Aveanna provides pediatric and adult healthcare services
including rehabilitation and hospice services and has a market
capitalization of $745 million. Were it to press on with a bid, it
would likely need financial backing of top shareholders, including
private equity firm Bain Capital.
Representatives for Encompass, Advent and Aveanna did not return
calls and emails seeking comment. A representative for Bain declined
to comment.
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
$1.2 billion acquisition of Maxim Healthcare in 2020 after the
Federal Trade Commission objected to the deal.
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 Encompass would not need antitrust clearance if
it spun off Enhabit to its shareholders or sold
it to a private equity firm that does not own a
competing business.
Last year hedge fund Jana Partners pushed
Encompass, which has a market value of $6.7
billion, to engage with third parties on a
potential merger for Enhabit, which offers
skilled nursing, aide and homemaker services and
occupational therapy.
The hedge fund and other shareholders said
combining Enhabit with another industry player
would better position the company to manage more
challenging conditions in the healthcare
industry. Encompass said last month that it
would slim down its board to no more than 12
directors after discussions with stockholders,
including Jana Partners.
(Reporting by Svea Herbst-Bayliss; Editing by
Cynthia Osterman)
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