International Paper completed the sale of its Global Cellulose Fibers (GCF) business to funds affiliated with American Industrial Partners (AIP), finalising a transaction valued at USD 1.5 billion. The agreement included the issuance to International Paper of preferred stock with an aggregate initial liquidation preference of USD 190 million.
The GCF business produced safe, high-quality cellulose pulp used across a broad range of applications, including towel and tissue products, diapers, feminine care, incontinence products and other personal care solutions supporting health and wellness. In addition, its specialty cellulose pulps were used as sustainable raw materials in applications such as construction materials, paints and coatings.
In 2024, International Paper’s Global Cellulose Fibers segment generated USD 2.8 billion in revenue, including contributions from mills that have since been closed. The operations transferred to AIP generated approximately USD 2.3 billion in revenue during the same year, excluding the impact of closed facilities.
The GCF business employed around 3,300 people worldwide and operated nine manufacturing facilities alongside eight regional offices across multiple geographies. With the completion of the transaction, these assets and operations were transferred to AIP as part of the agreed sale.
International Paper stated that the divestment marked a further step in the company’s portfolio transformation, allowing a sharper strategic focus on its core businesses while enabling the Global Cellulose Fibers operations to continue under new ownership.
