Icahn Enterprises L.P. (‘Icahn Enterprises’) operates as a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.
Icahn Enterprises owns a 99% limited partner interest in Icahn Enterprises Holdings L.P. (‘Icahn Enterprises Holdings’). Icahn Enterprises Holdings and its subsidiaries own substantially all of its assets and liabilities, and conduct subs...
Icahn Enterprises L.P. (‘Icahn Enterprises’) operates as a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.
Icahn Enterprises owns a 99% limited partner interest in Icahn Enterprises Holdings L.P. (‘Icahn Enterprises Holdings’). Icahn Enterprises Holdings and its subsidiaries own substantially all of its assets and liabilities, and conduct substantially all of its operations.
The company conducts, and plans to continue to conduct, its activities in such a manner as not to be deemed an investment company under the Investment Company Act of 1940, as amended (the ‘Investment Company Act’).
Business Strategy
As of December 31, 2024, through the company’s investment segment, it had significant positions in various investments, which include Southwest Gas Holdings, Inc. (SWX), American Electric Power Company, Inc. (AEP), Caesars Entertainment Inc. (CZR), International Flavors and Fragrances Inc. (IFF), and Bausch Health Companies, Inc. (BHC).
The company’s strategies are to purchase target stock and the subsequent removal of any barriers that might interfere with a friendly purchase, and pursue its activist strategy by purchasing stock or debt positions, and trying to promulgate change through a variety of activist approaches.
Business Description
Icahn Enterprises operates a portfolio of seven diversified reporting segments. With the exception of the company’s Investment segment, its operating segments primarily comprise independently operated businesses that it has obtained a controlling interest in through execution of its business strategy. The company’s Investment segment derives revenues from gains and losses from investment transactions. The company’s other operating segments derive revenues principally from net sales of various products, primarily within its Energy and Automotive segments, which together accounted for the significant majority of its consolidated net sales for each of the three years in the period ended December 31, 2024. The company’s other operating segments’ revenues are also derived through various other revenue streams, which primarily consist of automotive services and real estate leasing operations. The majority of the company’s consolidated revenues are derived from customers in the United States. The company’s Food Packaging segment accounted for the majority of its consolidated revenues derived from customers outside the United States.
Investment
The company’s Investment segment consists of various private investment funds (‘Investment Funds’) in which it has general partner interests, and through which it invests its proprietary capital. As general partner, it provides investment advisory and certain administrative and back-office services to the Investment Funds, but does not provide such services to any other entities, individuals, or accounts.
Energy
The company conducts its Energy segment through its majority owned subsidiary, CVR Energy, Inc. (‘CVR Energy’), along with a 2% interest in common units of CVR Partners, LP held outside of CVR Energy. CVR Energy is headquartered in Sugar Land, Texas. CVR Energy is a reporting company under the Exchange Act, and files annual, quarterly, and current reports, proxy statements, and other information with the SEC that are publicly available.
CVR Energy is a diversified holding company primarily engaged in the petroleum refining and marketing businesses, the renewable fuels businesses, as well as in the nitrogen fertilizer manufacturing and distribution businesses through its holdings in CVR Partners, LP, a publicly traded limited partnership (‘CVR Partners’). CVR Energy is an independent petroleum refiner and marketer of high-value transportation fuels primarily in the form of gasoline, diesel, jet fuel, and distillates. The renewables business refines renewable feedstocks, such as soybean oil, corn oil, and other related renewable feedstocks, into renewable diesel, and markets renewable products. CVR Partners produces and markets nitrogen fertilizers in the form of urea ammonium nitrate (‘UAN’) and ammonia. CVR Energy holds 100% of the general partner interest and approximately 37% of the outstanding common units of CVR Partners as of December 31, 2024. As of December 31, 2024, it owned approximately 66% of the total outstanding common stock of CVR Energy and 2% of the outstanding common units of CVR Partners.
Products, Raw Materials, Supply, and Customers
CVR Energy’s refining business has the capability to process a variety of crude oil blends. Its oil refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma, have a combined capacity of approximately 206,500 barrels per day (‘bpd’). In April 2022, CVR Energy converted its Wynnewood refinery’s hydrocracker to a renewable diesel unit (‘RDU’) with a nameplate capacity of 252,000 bpd, which RDU is also capable of being returned to hydrocarbon service. In addition to the use of third-party pipelines for the supply of crude oil, CVR Energy has an extensive gathering system consisting of logistics assets that are owned, leased, or part of a joint venture operation. Petroleum refining product yield includes gasoline, diesel fuel, pet coke, and other refined products, such as natural gas liquids, asphalt, and jet fuel, among other products.
CVR Partners produces and distributes nitrogen fertilizer products, which are used by farmers to improve the yield and quality of their crops. The principal products are UAN and ammonia. CVR Partners’ Coffeyville, Kansas, facility uses pet coke to produce nitrogen fertilizer and is supplied by its adjacent crude oil refinery pursuant to a renewable long-term agreement with CVR Energy, as well as by third parties. Historically, the Coffeyville nitrogen fertilizer plant has obtained the remainder of its pet coke requirements from third parties, such as other Midwestern refineries or pet coke brokers at spot prices. CVR Partners’ East Dubuque, Illinois, facility uses natural gas to produce nitrogen fertilizer. The East Dubuque facility is able to purchase natural gas at competitive prices due to its connection to the Northern Natural Gas interstate pipeline system, which is within one mile of the facility, and a third-party owned and operated pipeline.
Environmental Regulations
CVR Energy’s businesses are also subject to, or impacted by, various other environmental laws and regulations, such as the federal Clean Air Act, the federal Clean Water Act, the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the federal Resource Conservation and Recovery Act (RCRA), federal release reporting requirements relating to the release of hazardous substances into the environment, certain fuel regulations, and various other laws and regulations.
Renewable Fuel Standard
CVR Energy’s subsidiaries, Coffeyville Resource Refining & Marketing, LLC (‘CRRM’) and Wynnewood Refining Company, LLC (‘WRC’ and together with CRRM the ‘obligated-party subsidiaries’), are subject to the Clean Air Act’s renewable fuel standard (‘RFS’), which requires obligated parties whose obligations under the RFS are not otherwise waived or exempted to either blend ‘renewable fuels’ with their transportation fuels, or purchase renewable fuel credits, known as renewable identification numbers, in lieu of blending.
Automotive
The company conducts its Automotive segment through its wholly owned subsidiaries, Icahn Automotive Group LLC (‘Icahn Automotive’) and AEP PLC LLC (‘AEP PLC’). The Automotive segment is headquartered in Bala Cynwyd, Pennsylvania. The Automotive segment is engaged in providing a full range of automotive repair and maintenance services, along with the sale of any installed parts or materials related to automotive services (‘Automotive Services’) to its customers, as well as sales of automotive aftermarket parts and retailed merchandise (‘Aftermarket Parts’). In addition to its primary businesses, the Automotive segment leases available and excess real estate in certain locations under long-term operating leases.
On January 31, 2023, a subsidiary of Icahn Automotive, IEH Auto Parts Holding LLC and its subsidiaries (collectively ‘Auto Plus’), an Aftermarket Parts distributor held within the company’s Automotive segment, filed voluntary petitions (the ‘Chapter 11 Cases’) in the United States Bankruptcy Court for the Southern District of Texas (the ‘Bankruptcy Court’). As a result of Auto Plus’ filings for bankruptcy protections on January 31, 2023, the company no longer controlled the operations of Auto Plus, and therefore, it deconsolidated Auto Plus as of January 31, 2023.
Products, Services, and Customers
The automotive aftermarket industry is in the mature stage of its life cycle. Over the past decade, consumers have moved away from do-it-yourself (retail) toward do-it-for-me (services) due to increasing vehicle complexity and electronic content, as well as decreasing availability of diagnostic equipment and know-how. The Automotive segment seeks to provide an extensive selection of product offerings, competitive pricing, exceptional in-store service experience, and superior delivery to its customers.
Suppliers
The Automotive segment purchases parts from manufacturers and other distributors for sale in the aftermarket. Purchases are made based on current inventory or operational needs, and are fulfilled by suppliers within short periods of time. During 2024, the Automotive segment’s ten largest suppliers accounted for approximately 89% of the merchandise purchased, and its two largest suppliers accounted for approximately 43% of the merchandise purchased.
Other Operating Segments
Food Packaging
The company conducts its Food Packaging segment through its majority owned subsidiary, Viskase Companies, Inc. (‘Viskase’). Viskase is a producer of cellulosic, fibrous, and plastic casings used to prepare and package processed meat products. Approximately 68% of Viskase’s net sales during 2024 were derived from customers outside the United States.
As of December 31, 2024, the company owned approximately 91% of the total outstanding common stock of Viskase.
Real Estate
The company conducts its Real Estate segment through various subsidiaries. The company’s Real Estate segment consists of investment properties, which include land, retail, office, and industrial properties leased to corporate tenants, the development and sale of single-family homes, and the operations of a resort and two country clubs.
Home Fashion
The company conducts its Home Fashion segment through its wholly owned subsidiary, WestPoint Home LLC (‘WPH’). WPH’s business consists of manufacturing, sourcing, marketing, distributing, and selling home fashion consumer products. WPH’s operations include a manufacturing and distribution facility in Chipley, Florida, and a manufacturing facility in Bahrain, both of which are owned facilities.
Pharma
The company conducts its Pharma segment through its wholly owned subsidiary, Vivus LLC (‘Vivus’). Vivus is a specialty pharmaceutical company with two approved therapies and two product candidates in active clinical development.
History
Icahn Enterprises L.P. was founded in 1987. The company was incorporated in Delaware in 1987.