Icahn Is Said to Eye $1.5B in Possible Fel-Pro Sale

The transcript discusses Carl Icahn's long-term investment in the auto parts industry, particularly focusing on the Fel Pro brand. It highlights the challenges in finding a buyer due to the current market conditions and pricing strategies. The aftermarket auto parts sector faces competition from online retailers like Amazon, affecting pricing and profitability. Potential buyers are mainly private equity firms interested in the steady cash flow of the auto parts business.

What is one reason Carl Icahn might consider selling the FEL Pro business?

• He wants to invest in a new industry.

• The auto parts sector is currently very attractive.

• He has received a good price offer.

• He is retiring from business.

What is the expected valuation multiple for the FEL Pro business according to the transcript?

• 8 times EBIT

• 6 times EBIT

• 5 times EBIT

• 10 times EBIT

How has online competition affected the aftermarket auto parts industry?

• It has reduced the number of players in the market.

• It has made pricing more competitive.

• It has increased the demand for parts.

• It has improved shelf space availability.

Who are the primary potential buyers for the FEL Pro business?

• Government agencies

• Private equity firms

• Individual investors

• Strategic companies in the gasket business

What is a challenge faced by strategic companies in acquiring the FEL Pro business?

• Lack of interest in the auto parts sector

• Potential antitrust issues

• High operational costs

• Limited market knowledge