Beneath stress from an activist investor, Enhabit Inc. (NYSE: EHAB) launched extra details about its strategic overview, which was accomplished earlier this month.

As an alternative of a merger or sale, the Dallas-based dwelling well being and hospice firm has chosen to stay an unbiased, publicly traded firm.

Activist investor AREX Capital Administration beforehand mentioned a sale was the “solely acceptable final result” of the overview, which it had inspired within the first place. Unsurprisingly, the corporate was not proud of the route Enhabit's board finally took.

“We’re disillusioned that Enhabit's strategic overview course of has been accomplished with no sale of the corporate,” AREX Capital wrote in a press release after the announcement. “We don’t consider this failure displays Enhabit's intrinsic worth or strategic potential. This failure lies slightly with Enhabit's administration.”

AREX Capital additionally introduced that it has nominated an inventory of seven “extremely certified candidates” to face for election at Enhabit's 2024 annual assembly, which can happen later this yr.

Enhabit responded Thursday to the nomination of candidates for the nine-member board, offering particulars of what it referred to as a “complete” strategic overview course of.

“Enhabit, with the help of its monetary advisor, Goldman Sachs, and its authorized advisor, Sidley Austin, carried out an intensive course of that lasted roughly 9 months. Goldman Sachs was given full leeway to interact potential counterparties,” Enhabit wrote in a press release. “The method concerned 38 potential counterparties, together with strategic consumers and monetary sponsors. Of these events, 26 have drawn up non-disclosure agreements and 9 participated in administration shows.”

Enhabit has 255 dwelling care areas and 112 hospice areas throughout 34 states. It initially launched its strategic overview course of in August final yr.

“4 events, consisting of two monetary sponsors and two strategic consumers, gave the primary indications of curiosity,” Enhabit continued. “The events confirmed various levels of curiosity; Nevertheless, nobody has submitted a proper bid, regardless of the corporate's in depth efforts to facilitate due diligence. Vital headwinds impacted the strategic overview course of, together with regulatory developments associated to modifications in Medicare Benefit charges and the antitrust panorama, a troublesome healthcare working atmosphere and persistently excessive rates of interest.”

The corporate additionally offered extra in-depth particulars in regards to the discussions it had through the strategic overview course of.

It additionally wrote that the board stays “steadfast” in its dedication to maximizing shareholder worth and can proceed to guage choices that help this effort.

The eight unbiased administrators nominated for re-election to Enhabit's board on the annual assembly additionally issued a press release.

“Enhabit's strategic alternate options course of was strong and included reaching out to a major variety of doubtlessly third events,” they wrote. “As well as, Enhabit made a public announcement of the method to make sure that different potential counterparties would concentrate on the method. After 9 months and after no viable proposals had been obtained, regardless of giving probably the most events ample time to submit such a proposal, the board unanimously determined to finish the strategic overview. We stay assured that the corporate has taken the appropriate steps to enhance monetary and operational outcomes, strengthen progress and create vital worth for all Enhabit shareholders. We’re disillusioned that AREX initiated a proxy contest to take management of the board, within the wake of the great strategic overview they demanded.”