American Industrial Partners ("AIP"), a focused industrials investor, today announced that an affiliate of AIP has completed its acquisition of the Global Cellulose Fibers (GCF) business of International Paper. GCF now operates as an independent company.
As part of the sale agreement, AIP acquired the GCF business for $1.5 billion including the issuance to International Paper of preferred stock with an aggregate initial liquidation preference of $190 million.
Headquartered in Memphis, Tennessee, GCF is the leading global producer of high-quality absorbent fluff pulp for a wide range of personal care applications including feminine care, incontinence, infant diapers, and other products that promote health and wellness.
In addition, its specialty pulp serves as a sustainable raw material used in construction materials, paints, coatings and more. The GCF segment of International Paper generated $2.8 billion in revenue in 2024, including contributions from mills that have since closed. The business operations sold to AIP generated approximately $2.3 billion in revenue in 2024 excluding the revenue from closed mills. The business has 3,300 employees globally, nine manufacturing facilities across the U.S., Canada, and Poland, and eight regional offices.
"We are pleased to officially welcome GCF to AIP and establish the company as a newly independent business," said Rick Hoffman, Partner at AIP. "GCF's leading position in the global fluff pulp market, experienced workforce, well-invested facilities, and strong customer relationships make it well-positioned for future growth. It has been a privilege to work alongside Clay Ellis and the rest of GCF's talented and tenured management team during the carve-out from International Paper. We look forward to further implementing our combined Operating Agenda, rooted in our commitment to safety, quality, operational excellence, reliability, and long-term value creation."
"Becoming an independent company marks an exciting new chapter for GCF, and we are proud to partner with AIP in this next phase," said Clay Ellis, Chief Executive Officer of Global Cellulose Fibers. "AIP's long-term investment approach and deep operational expertise align well with our culture and priorities, and we remain focused on serving our customers, supporting our employees, and building on the strong foundation already in place."
BofA Securities acted as exclusive financial advisor to AIP and provided committed financing for the transaction. Davis Polk & Wardwell LLP acted as transaction counsel, Ropes & Gray LLP acted as financing counsel, and Baker Botts LLP acted as regulatory counsel to AIP.
About AIP
American Industrial Partners is an operationally-oriented industrials investor. AIP seeks to achieve differentiated returns by investing in quality industrial businesses with strong management teams and working with those teams to implement transformative Operating Agendas to build long-term value. The AIP team has deep roots in the industrial economy and has actively invested across three economic cycles. AIP has completed over 145 platform and add-on acquisitions and invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with sales greater than $500 million. Current AIP portfolio companies generate aggregate annual revenues of approximately $29 billion and employ 72,000+ employees as of September 30, 2025.
About Global Cellulose Fibers
Global Cellulose Fibers ("GCF") operates seven pulp mills and two converting facilities that produce fluff pulp, papergrade pulp, and specialty pulp products used in a wide range of consumer applications, including diapers and other hygiene products, as well as tissue, towel, and specialty paper applications. GCF generated annual revenue of approximately $2.3 billion in 2024 and employs approximately 3,300 people across eight countries.
