Icahn will invest up to $200 million more in WestPoint Home

New York -- In a strong show of support for WestPoint Home, investor Carl Icahn, who controls the major mill through his American Real Estate Partners holding company, said he will invest up to $200 million more in WestPoint, providing the textiles producer a comfortable cushion and the cash to continue building its off-shore manufacturing base.

American Real Estate Partners said it will spend $100 million to buy 1 million shares of a new issue of WestPoint Home preferred stock at $100 per share. Another 1 million shares priced at $100 a share will be made available to other investors -- and if there are no takers for that second block of stock, Icahn's company said it will purchase those shares as well, for a combined investment of $200 million.

The news would seem to knock down speculation from industry nay-sayers that Icahn has grown impatient with his WestPoint investment.

Icahn's cash commitment is the second strong dose of good news for the major mill in less than a month, following word the company had slashed its third-quarter operating loss by more than half from the preceding second quarter. Additionally, sales edged up by 1.4% during the third quarter, making steady gains throughout the year in a punishing retail environment that has hammered other textiles producers.

Featured Video

  • The Countdown to the ICON Honors Continues featuring Christophe Pourny

    Camera Icon More Videos


HTT digital edition

See the May 2017 issue of Home & Textiles Today. In this issue, we discuss our annual Market Basket survey, which finds higher prices and more polyester at leading retailers. See details!