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HealthSouth Corp inks deal to take over EHHI Holdings
Tuesday 25 November 2014

25 November 2014 - US inpatient rehabilitation hospitals operator HealthSouth Corp (NYSE:HLS) has announced its entry into an agreement to take over domestic peer EHHI Holdings Inc for about USD750m (EUR603.7m).

The deal is pending regulatory approval, including a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Provided that it meets certain customary closing conditions, it is expected to close before the end of 2014, the buyer pointed out in a statement.

EHHI Holdings owns Encompass Home Health and Hospice, which in turn operates some 140 locations in 13 states. In total, it employs 2,100 people who take care of approximately 2.1m patients visiting in an annual basis. Currently, Encompass is owned by US investment fund Cressey & Company LP.

HealthSouth president and CEO Jay Grinney commented that the acquisition would significantly expand the company's inpatient rehabilitation portfolio and will position it well among competitors in the sector.

In connection to the transaction, HealthSouth received financial advice from JP Morgan Securities LLC, while Skadden, Arps, Slate, Meagher & Flom LLP served as its legal counsel.
Details
Date Published: 25/11/2014
Target: EHHI Holdings Inc
Country: USA
Deal Size: 750m (USD)
Sector: Healthcare
Type: Corporate acquisition
Status: Agreed
Vendor: Cressey & Company LP
Buyer: HealthSouth Corp
Buyer Advisor: JP Morgan Securities LLC, Skadden, Arps, Slate, Meagher & Flom LLP

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