HealthSouth Corp. (NYSE: HLS) is buying EHHI Holdings Inc. for $750 million.
EHHI owns Encompass Home Health and Hospice, a Dallas-based provider of Medicare-focused skilled home health services in the U.S. The group has 140 locations in 13 states and about 5,000 employees. EHHI is being sold by private equity firm Cressey & Co. LP.
Birmingham, Alabama-based HealthSouth, which provides inpatient rehabilitation care through hospitals, says the deal will help it get into home health.
J.P. Morgan Securities LLC as HealthSouth's financial adviser, and Skadden Arps Slate Meagher & Flom LLP is providing legal advice. Harris Williams & Co. was EHHI's financial adviser on the deal.
Health care providers have been expanding services to serve an influx of patients from the Affordable Care Act. In September, Nautic Partners bought All Metro Health Care Services Inc., which provides care to senior citizens. In January, SCL Health System and joint venture partner Univita Health picked up All Care Home Health, which provides at-home nursing services.
Chicago private equity firm Cressey sold another company, Homecare Homebase LLC, a software service provider for the home care-market, in December.