In December, Carl Icahn, one of Wall Street’s most successful investors, increased his stake in nitrogen fertilizer producer CVR Partners to 38% by purchasing common units worth $2.4 million. The billionaire took an interest in the company after Donald Trump‘s victory in the U.S. presidential election. Known as an activist investor, Icahn often pushes for changes in the companies he invests in.
Details
From December 13 through December 30, Icahn acquired 32,348 CVR Partners units for $2.4 million, reports Barron’s, citing filings submitted to the U.S. SEC. The transactions were made through Icahn Enterprises’ subsidiary, American Entertainment Properties (AEP). The average price per unit was $74.53. CVR Partners is now trading nearly 3% higher — at almost $77 per unit (as of the close of trading on January 3).
Icahn and his affiliates, including AEP, now own over 4 million CVR Partners units, a stake of more than 38%, according to a December 20 SEC filing.
Icahn Enterprises did not respond to Barron’s request for comment.
Context
AEP began directly purchasing CVR Partners units on November 6, 2024, the day after the U.S. presidential election, when Donald Trump declared victory, according to the SEC filings. Nearly 30 purchase transactions have been recorded since then. As noted in the December 20 SEC filing, Jefferies may buy up to an additional 320,000 units on behalf of AEP between January 20 and June 1, 2025, subject to certain conditions, including unit price.
About CVR Partners and Icahn
CVR Partners produces produce ammonia and urea ammonium nitrate (UAN) fertilizers. In the third quarter of 2024, the company’s net sales slipped 4% to $125.2 million, but its net income came in at $3.8 million, five times the amount in the previous-year period, according to its financials. CEO Mark Pytosh attributed this to higher nitrogen fertilizer prices in the new planting season compared to 2023. He also added that the company remains focused on generating free cash flow. Increased profitability allowed CVR Partners to announce a dividend of $1.19 per common unit.
CVR Partners publicly lists common units, rather than stock, as it is organized as a limited partnership rather than a corporation, Barron’s noted.
Carl Icahn’s net worth is currently estimated at $4.2 billion, according to Forbes Real-Time Billionaires rankings, which are updated based on the value of their assets. Icahn is an activist investor known for acquiring stakes in major companies and lobbying boards to implement changes that could improve their share prices. Forbes has described him as one of Wall Street’s most successful investors, who “has been shaking up corporate America for decades.” Icahn has “bullied” the boardrooms of corporate titans like Texaco, Dell, and Apple, notes the Wall Street Journal. His primary investment vehicle is Icahn Enterprises.
