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AREX Capital Management Urges Enhabit, Inc. Board of Directors to Prioritize Sale in Open Letter

AREX Capital Management, LP, a value-oriented investment firm based in New York City, has issued an open letter to the Board of Directors of Enhabit, Inc., urging them to prioritize the sale of the company. AREX, together with its affiliates, owns approximately 4.7% of Enhabit’s shares.

In the letter, AREX expressed disappointment with Enhabit’s poor communication, which has caused harm to shareholders. The company’s attempt to streamline their strategic alternatives review process resulted in confusion among investors, as the initial 8-K filing failed to mention the process. AREX emphasized that Enhabit’s lenders did not slash their Revolving Credit Facility commitments, as implied in the disclosure. The company’s effective revolver limit also saw minimal change.

AREX highlighted that Enhabit’s strategic alternatives review process should lead to a sale, as the value of the company’s strategic assets has been overshadowed by underwhelming execution and excessive overhead. The investment firm stressed that the highest bid received in a full and fair auction should determine Enhabit’s fair value, and a sale is the only acceptable outcome.

AREX made it clear that if the company has not announced a sale by early next year, they will take decisive action to protect their rights as shareholders.

Enhabit, Inc. is a publicly traded company with significant unrealized potential. AREX Capital Management, LP takes a long-term, opportunistic approach to investing and focuses on companies like Enhabit.

For media inquiries, please contact Valerie Toomey, Chief Operating Officer of AREX Capital Management, LP.

About AREX Capital Management, LP:
AREX Capital Management, LP is a value-oriented investment firm based in New York City. The firm focuses on publicly traded companies with significant, unrealized potential.

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