Newly independent Global Cellulose Fibers business will be wholly focused on delivering industry-leading absorbent fluff pulp used primarily in personal care products
International Paper has reached a definitive agreement with American Industrial Partners (AIP) to sell its Global Cellulose Fibers (GCF) business for $1.5 billion, subject to closing adjustments, including the issuance of preferred stock with an aggregate initial liquidation preference of $190 million. International Paper previously announced the decision to review strategic alternatives for its GCF business last fall, as part of the Company's strategy to focus on sustainable packaging solutions.
The transaction is expected to close by the end of the year, subject to regulatory approvals.
"GCF is a strong business, and I'm pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses," said IP Chief Executive Officer Andy Silvernail. "Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio. These actions, combined with its talented and committed team made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership."
Global Cellulose Fibers operates seven pulp mills and two converting facilities that produce safe, high-quality pulp for a wide range of applications like towel and tissue products, diapers, feminine care, incontinence and other personal care products that promote health and wellness. In addition, it produces high quality softwood pulp, and modified fibers at its manufacturing facilities across the U.S., Canada, and Poland. Its specialty pulp serves as a sustainable raw material used in construction materials, paints, coatings and more.
GCF generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices.
This well-invested manufacturing footprint and tenured employee base positions GCF to benefit from durable demand tailwinds, including population growth, rising incomes, and customer desires for product absorbency and comfort.
"With decades of highly relevant industrial and manufacturing experience, AIP is the right partner to back our growth and success as an independent company," said Clay Ellis, Senior Vice President, GCF, International Paper. "We look forward to partnering with AIP to continue to deliver high-quality absorbent materials for personal care products to customers globally."
"GCF is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities," said Rick Hoffman, Partner at AIP. "We look forward to partnering with Clay and the rest of GCF's talented and tenured management team to implement their growth vision."
