International Paper finalizes sale of Global Cellulose Fibers unit

USA – International Paper has completed the sale of its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP), marking a significant portfolio shift for the Memphis, Tennessee-based paper and packaging major as it sharpens its focus on core packaging operations.

The transaction, first announced in August 2025, values the GCF business at US$1.5 billion. The deal includes a combination of cash and preferred stock, with International Paper receiving preferred equity carrying an initial liquidation preference of US$190 million.

Following the close of the transaction late last week, GCF now operates as an independent company, retaining its headquarters in Memphis.

GCF Chief Executive Officer Clay Ellis described the transition as a pivotal milestone for the business.

“Becoming an independent company marks an exciting new chapter for GCF,” Ellis said, noting that AIP’s long-term investment horizon and operational focus align closely with the company’s culture and strategic priorities.

He added that GCF remains focused on customer service, workforce support and building on its existing industrial base.

The business is a leading global producer of fluff pulp used in hygiene and personal care products, including tissue, towel and absorbent applications.

Beyond hygiene markets, GCF’s specialty cellulose pulp serves as a renewable raw material for construction products, paints, coatings and other industrial uses, positioning it within broader sustainability-driven material substitution trends.

At the time of sale, GCF operated nine manufacturing facilities across the United States, Canada and Poland and employed approximately 3,300 people.

International Paper reported that the GCF segment generated around US$2.8 billion in revenue in 2024, including output from mills that have since been closed.

The assets transferred to AIP accounted for approximately US$2.3 billion in revenue, excluding those shuttered operations.

AIP partner Rick Hoffman said the firm sees strong long-term potential in the business.

“GCF’s leading position in the global fluff pulp market, experienced workforce and well-invested facilities make it well-positioned for future growth,” he said, adding that AIP plans to focus on safety, operational excellence and reliability as the company moves forward independently.

The divestment comes as International Paper continues to streamline operations amid challenging macroeconomic conditions, including softer global demand, volatile input costs and ongoing restructuring across the forest products sector.

In 2025, the packaging giant closed four of its USA facilities in response to weaker demand from e-commerce and consumer goods companies.

The company also divested 5 of its corrugated packaging plants in Europe. The move follows an irrevocable offer from PALM and is tied to regulatory commitments related to IP’s recent acquisition of DS Smith.

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