Enhabit, Inc. (NYSE:EHAB) announced that it has satisfied the conditions in its Tax Matters Agreement ("TMA"), dated June 30, 2022, with Encompass Health Corporation 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 issued the following statement: "Enhabit is a leader in a valuable industry, providing a better way to care where patients prefer to receive their care. The Enhabit board and management team are aligned in their belief that the best way to enhance value for stockholders is to comprehensively review the Company's strategic alternatives, including a potential sale of Enhabit. We will pursue the pathway that enhances value for our stockholders and ensures we can continue to deliver exceptional care to our patients." There can be no assurance the Company's strategic alternatives process will result in Enhabit pursuing any particular transaction or other strategic outcome or that any such transaction will satisfy the remaining conditions in the TMA.

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. Goldman Sachs & Co. LLC is serving as financial advisor to Enhabit.