Icahn Enterprises
| Company type | Public master limited partnership |
|---|---|
| Industry | Conglomerate |
| Founded | February 17, 1987 |
| Founder | Carl Icahn |
| Headquarters | Sunny Isles Beach, Florida , United States |
Area served | United States |
Key people | Carl Icahn (86% owner), Brett Icahn (successor chairman and CEO of investment branch) |
| Products | Investments in energy, automotive, food packaging, metals, real estate, home fashion, pharmaceuticals |
Number of employees | 89000+ (2017) |
Icahn Enterprises L.P. is a publicly listed American master limited partnership and diversified conglomerate based in Milton Tower, Sunny Isles Beach, Florida. The firm maintains investments spanning sectors such as energy, automotive, food packaging, metals, real estate, and home fashion. Control of the company rests with Carl Icahn, who holds an 86% ownership stake.
History
Established on February 17, 1987, Icahn Enterprises has adopted a varied business approach through targeted acquisitions and asset sales. In 2006, it disposed of the Sands Atlantic City hotel along with nearby land for $274.8 million. The next year, it sold American Casino & Entertainment Properties for $1.3 billion. Additionally in 2007, American Real Estate Partners merged into Icahn Enterprises, resulting in the current company name.
The industrial segment was bolstered in 2008 with the $335 million acquisition of PSC Metals. In 2016, the company acquired Trump Entertainment Resorts, which owned the Hard Rock Hotel & Casino Atlantic City, before selling the casino in 2017 for $50 million. That year also saw Icahn Enterprises expand its automotive services by purchasing Pep Boys and Federal-Mogul, followed by the acquisition of Precision Auto Care in 2017.
In August 2017, the firm sold the former Fontainebleau Resort Las Vegas property for $600 million, marking a substantial gain from its $148 million purchase in 2010. Later that year, it added American Driveline Systems—the franchisor behind AAMCO and Cottman Service Centers—to its portfolio. By 2017, Icahn Enterprises employed more than 89,000 individuals.
In October 2020, Carl Icahn designated his son Brett as successor chairman of Icahn Enterprises and CEO of its investment branch, Icahn Capital LP, signaling a planned leadership transition within the organization.
From a financial perspective, the company recorded a third-quarter loss of $714 million in 2020, a significant increase compared to a $49 million loss during the same period in 2019. In January 2023, Auto Plus—a subsidiary—filed for Chapter 11 bankruptcy protection; shortly thereafter, Pep Boys was spun off into an independent company.
By 2024, Icahn Enterprises reported revenue totaling $10.02 billion alongside net losses of $445 million and assets valued at $16.28 billion. Its corporate strategy emphasizes capitalizing on its broad investment base to sustain influence across various industries under Carl Icahn’s entrepreneurial guidance.
Hindenburg Research
In May 2023, short-selling firm Hindenburg Research published a report alleging that Icahn Enterprises was overvalued due to substantial dividend payments funded by incoming investor capital. The analysis also noted that Carl Icahn had leveraged most of his holdings as loan collateral, which could be called upon if share prices dropped. Following this disclosure, the company’s stock price declined by 20%. Hindenburg further accused Icahn of running a "Ponzi-like financial structure." In response, Icahn Enterprises announced a 50% reduction in dividends in August 2023.
In August 2024, the SEC imposed fines totaling $2 million—$1.5 million on Icahn Enterprises and $500,000 on Carl Icahn—for failing to disclose pledges of company securities used as collateral for personal loans as outlined in the report. Neither party admitted to any wrongdoing as part of the settlement agreement.
A class-action lawsuit filed in Florida was dismissed in September 2024 after the court determined that risks related to dividends had been properly disclosed and that Carl Icahn’s borrowing activities were sufficiently reported.
Investments
By December 2020, the company's asset holdings comprised:
- CVR – operations in petroleum refining and nitrogen fertilizer production
- American Railcar Industries – manufacturer specializing in railcars
- Ferrous Resources (77.2% ownership) – holder of mining rights located in Brazil
- Viskase (74.6% ownership) – manufacturer of cellulosic, fibrous, and plastic casings used in processed meat and poultry products
- Bayswater Development – involved in real estate development projects
- WestPoint Home – producer of bedding and bath fashion items
- Vivus – pharmaceutical enterprise