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Icahn Enterprises L.P. is an American publicly traded master limited partnership and conglomerate headquartered at Milton Tower in Sunny Isles Beach, Florida.[2] The company has investments in various industries including energy, automotive, food packaging, metals, real estate and home fashion. The company is controlled by Carl Icahn, who owns 86 percent of it.[1]
 | |
| Company type | Public |
|---|---|
| Nasdaq: IEP | |
| Industry | Conglomerate |
| Predecessor | American Real Estate Partners L.P. |
| Founded | February 17, 1987 |
| Headquarters | Sunny Isles Beach, Florida, U.S. |
Key people |
|
| Revenue |  US$11.1 billion (2023) |
| −US$684 million (2023) | |
| Total assets | US$20.9 billion (2023) |
| Total equity | US$6.07 billion (2023) |
| Owner | Carl Icahn (86%) |
Number of employees | 38 (2023) |
| Website | ielp.com |
| Footnotes / references [1] | |
The company was incorporated on February 17, 1987.[1]
In 2006, the company sold the Sands Atlantic City hotel in Atlantic City, New Jersey and several of the adjacent lots for $274.8 million to Pinnacle Entertainment.[3]
In April 2007, the company sold its American Casino & Entertainment Properties to an affiliate of Goldman Sachs, for $1.3 billion.[4][5] In September 2007, American Real Estate Partners, another entity controlled by Icahn, merged with the firm and changed its name to Icahn Enterprises L.P.[6]
In 2008, the company acquired PSC Metals for $335 million.[7]
In February 2016, Icahn Enterprises purchased Trump Entertainment Resorts, which owned the Hard Rock Hotel & Casino Atlantic City.[8] The company sold the casino to the owners of Hard Rock Cafe for $50 million in May 2017 - which represented a recuperation of just 4 cents on the dollar.[9] Also in February 2016, the company acquired Pep Boys.[10]
In January 2017, the company acquired Federal-Mogul.[11] In June 2017, the company acquired Precision Auto Care, a chain of over 250 vehicle repair shops.[12] In August 2017, the company sold the property formerly known as the Fontainebleau Resort Las Vegas for $600 million. The company had acquired the property in 2010 for $148 million.[13] In October 2017, the company acquired American Driveline Systems.[14] The company had 89,034 employees as of 2017.[15]
In October 2020, Carl Icahn announced his son Brett would succeed him as chairman of Icahn Enterprises and CEO of its investment subsidiary Icahn Capital LP.[16]
In November 2020, Icahn Enterprises reported third quarter losses of $714 million, compared to a loss of $49 million the same quarter the previous year.[17]
On January 31, 2023, one of its subsidiaries, Auto Plus, filed for Chapter 11 bankruptcy, and Pep Boys spun off into its own company.[18][19]
Hindenburg Research
In May 2023, short seller Hindenburg Research released an analysis of Icahn Enterprises with claims that the company is over-valued due to paying large dividends using investments from new investors. In addition, the analysis claims that Icahn took out loans against a majority of his holdings and that these have the potential to be called should the stock price move downward. On the day of the release of this analysis the share price of Icahn Enterprises dropped by 20%.[20][21][22] Hindenburg also accused Icahn of running a "Ponzi-like economic structure".[23] The company announced in its quarterly earnings report in August 2023 that it would cut its dividend in half.[24]
the Hindenburg Research report on Carl Icahn and Icahn Enterprises (IEP) has been debunked in several ways, including: Settlement with the SEC Icahn and IEP settled with the SEC after the short-seller firm released a report accusing Icahn of "ponzi-like" behavior and other alleged disclosure failures. The settlement did not claim that Icahn or IEP inflated asset values or engaged in a "Ponzi-like" structure. Federal judge dismisses lawsuit A federal judge dismissed a lawsuit against Icahn that accused him of defrauding shareholders. The judge said that IEP sufficiently disclosed its risks to shareholders and that evidence suggested Icahn believed in the long-term value of his company. Icahn Enterprises corrected disclosure violation IEP corrected a disclosure violation more than a year before the Hindenburg report and the start of the government investigation. The government found no fraud or inflation of IEP's net asset value. Icahn has called the Hindenburg accusations "false" and "totally irresponsible". He has also said that the government investigation found "absolutely no fraud".
As of December 2020[update], the company owns the following:[25]
- CVR - petroleum refining and nitrogen fertilizer manufacturing
- American Railcar Industries
- Ferrous Resources (77.2%) - owns mining rights in Brazil
- Viskase (74.6%) - produces cellulosic, fibrous and plastic casings for the processed meat and poultry industry
- Bayswater Development - a real estate development company
- WestPoint Home - bed and bath fashion productions
- Vivus - pharmaceutical company
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