Encompass Health to spin off home health, hospice division

(Reuters) - Encompass Health Corp said on Wednesday it would spin off its home health and hospice business to form an independent, listed company, Enhabit Home Health & Hospice.

The company, which expects the rebranding to begin in mid-April and the spin-off to be completed in the first half of the year, said Encompass Health shareholders will own stock in both the companies.

The home health and hospice division reported $273.9 million in revenue in the third quarter ended September, even as expenses rose and business growth suffered due to COVID-19.

Citigroup Global Markets Inc and Goldman Sachs & Co LLC are the company’s financial advisers for the spin-off.

Reporting by Leroy Leo; Editing by Vinay Dwivedi