International Paper (NYSE: IP) has announced the sale of its Global Cellulose Fibers (GCF) business to private equity firm American Industrial Partners for $1.5 billion.
The transaction, which includes $190 million in preferred stock, is expected to close by the end of 2025, pending regulatory approvals.
Strategic Shift to Sustainable Packaging
This divestiture aligns with International Paper’s strategic focus on sustainable packaging solutions. CEO Andy Silvernail emphasized the company’s commitment to streamlining its portfolio to better serve customers and enhance shareholder value.
The GCF business, which generated approximately $2.8 billion in revenue in 2024, will operate as an independent entity specializing in absorbent fluff pulp used in personal care products .
Global Operations and Workforce
The GCF division encompasses nine manufacturing facilities and eight regional offices across the United States, Canada, and Poland.
It employs approximately 3,300 individuals globally. The business serves a diverse range of markets, including feminine hygiene, incontinence, infant diapers, and specialty applications such as construction materials, paints, and coatings .
Market Reaction
Following the announcement, International Paper’s stock experienced a modest increase, reflecting investor confidence in the company’s strategic direction.
As of the latest trading session, shares were priced at $48.09, up 2.3% from the previous close .
The sale of the GCF business marks a significant step in International Paper’s ongoing transformation into a more focused and sustainable packaging company.
The company remains committed to delivering value to its customers and shareholders while advancing its environmental and operational goals.
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