Icahn Enterprises, the master limited partnership and diversified holding company headed by Carl Icahn completed the acquisition of Uni-Select USA and Beck/Arnley Worldparts.
Icahn Enterprises previously announced that it would acquire substantially all of the assets of Uni-Select USA and Beck/Arnley Worldparts for $340 million. According to the master limited partnership, the acquisition included 38 distribution centers and satellite locations, 240 corporate-owned jobber stores, and more than 3,500 employees.
The ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More
Icahn Enterprises said it would operate Uni-Select’s auto parts distribution business independently from its subsidiary, Federal Mogul Holdings, one of the leading global suppliers of automotive products and services.
According to Icahn Enterprises, all of the transactions between Uni-Select and Federal Mogul Holdings will be conducted on an arms-length basis. The independent directors of each company will approve the transactions.
Mr. Icahn stepped down from the board of directors of Federal Mogul. Daniel A. Ninivaggi, the co-chief executive officer of Federal-Mogul also resigned from the board of directors of Icahn Enterprises. Their resignations were in connection with the closing of the acquisition of Uni-Select and Beck/Arnley Worldparts.
Acquisition exemplifies Icahn Enterprises’ strategy
In a statement, Mr. Icahn said, “We are extremely pleased to add the U.S. segment of Uni-Select to the Icahn Enterprises family of companies. This acquisition exemplifies our strategy of finding undervalued companies with great growth potential.”
The activist investor expressed confidence that Icahn Enterprises will be able to grow the newly acquired businesses with its abundance resources and knowledge of the industry.
Mr. Icahn also stated that Icahn Enterprises will take advantage of consolidation opportunities for the benefit of its customers, manufacturing partners, employees, and shareholders.
Uni-Select President and CEO Richard Roy previously commented that the “transaction unlocks value for our shareholders.” He also believed that the deal would strengthen the company’s balance sheet, profitability and future growth potential.
Icahn Enterprises financial performance
The shares of Icahn Enterprises are trading $90.50 per share at the time of this writing around 1:46 in the afternoon in New York.
During the first quarter of 2015, Icahn Enterprises posted adjusted net income of $168 million or $1.28 per depositary unit, an increase of 66%. Its revenue was $4.5 billion.
Commenting on its financial performance, Mr. Icahn said the master limited partnership experience some headwinds with respect to the global economy, but he is optimistic that its investment and operating segments are positioned for success.