AMERICAN INDUSTRIAL PARTNERS TO ACQUIRE INTERNATIONAL PAPER'S GLOBAL CELLULOSE FIBERS BUSINESS

Rhea-AI Summary

International Paper (NYSE: IP) has announced the sale of its Global Cellulose Fibers (GCF) division to American Industrial Partners (AIP). GCF, which generated $2.5 billion in revenue in 2024, is a leading global producer of absorbent fluff pulp used in personal care products.

The division employs 3,300 associates across manufacturing facilities in the U.S., Canada, and Poland. The transaction is expected to close in Q4 2025, subject to regulatory approvals. GCF's strategic position is strengthened by its sustainable wood basket, established customer relationships, and well-invested facilities.

Positive

• GCF division generated substantial revenue of $2.5 billion in 2024
• Strong market position as leading global producer of fluff pulp
• Diversified manufacturing presence across U.S., Canada, and Poland
• Well-positioned for growth due to population growth and rising income trends
• Large and sustainable wood basket provides competitive advantage

Negative

• Divestment reduces International Paper's market diversification
• Transaction subject to regulatory approval risks
• Potential integration challenges as GCF transitions to independent operation

News Market Reaction

+2.17%

1 alert

+2.17% News Effect

On the day this news was published, IP gained 2.17%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Newly independent Global Cellulose Fibers business will be wholly focused on delivering industry-leading absorbent fluff pulp used primarily in personal care products

NEW YORK, Aug. 21, 2025 /PRNewswire/ -- American Industrial Partners ("AIP"), a focused industrials investor, today announced its affiliate has signed a definitive agreement to acquire the Global Cellulose Fibers division ("GCF") of International Paper (NYSE: IP). 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.

GCF is a leading producer of fluff pulp, high quality softwood pulp, and modified fibers at its manufacturing facilities across the U.S., Canada, and Poland. GCF employs approximately 3,300 highly experienced associates and in 2024 generated approximately $2.5 billion in annual revenue.  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."

The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals, and is expected to close in Q4 2025. BofA Securities is acting as exclusive financial advisor to AIP and providing committed financing for the transaction. Davis Polk & Wardwell LLP is acting as transaction counsel, Ropes & Gray LLP is acting as financing counsel, and Baker Botts LLP is acting as regulatory counsel to AIP.

About American Industrial Partners
American Industrial Partners ("AIP") is a global industrials investor, with approximately $17 billion in assets under management. AIP is distinctively focused on industrial businesses across a broad range of end markets that include: aerospace and defense, automotive, building products, capital goods, chemicals, industrial services, industrial technology, logistics, metals & mining, and transportation, among others. AIP seeks 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. Current AIP portfolio companies generate aggregate annual revenues of approximately $28 billion and employ 73,000+ employees as of June 30, 2025. In October 2023, AIP closed its eighth fund at $5.1 billion.  www.americanindustrial.com

About Global Cellulose Fibers 
Global Cellulose Fibers ("GCF") operates seven pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp products for diverse consumer applications including diapers, other hygiene products, and tissue. GCF generated annual revenue of approximately $2.5 billion in 2024 and employs approximately 3,300 people with manufacturing operations in Canada, Poland and the U.S. (Mississippi, Virginia, Georgia, and North Carolina).

Media Contacts:

For American Industrial Partners:
Pro-AIP@prosek.com

For International Paper or Global Cellulose Fibers:
newsroom@ipaper.com

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SOURCE American Industrial Partners

FAQ

What is the value of International Paper's GCF division sale to American Industrial Partners?

The specific transaction value was not disclosed in the announcement, though the division generated $2.5 billion in revenue in 2024.

How many employees will be affected by International Paper's GCF division sale?

The GCF division employs approximately 3,300 highly experienced associates across its manufacturing facilities in the U.S., Canada, and Poland.

When will International Paper's sale of GCF to American Industrial Partners close?

The transaction is expected to close in Q4 2025, subject to customary closing conditions and required regulatory approvals.

What products does International Paper's GCF division manufacture?

GCF produces high-quality absorbent fluff pulp used primarily in personal care products including feminine care, incontinence, infant diapers, and other health and wellness products.

Who will lead the GCF division after the acquisition by American Industrial Partners?

Clay Ellis, currently Senior Vice President of GCF at International Paper, will continue to lead the division along with the existing management team.