International Paper to Sell Global Cellulose Fibers Business for $1.5 Billion
International Paper Announces Strategic Changes
On Thursday, International Paper (IP) announced it has reached a definitive agreement to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for $1.5 billion, subject to closing adjustments. The agreement includes the issuance of preferred stock with an aggregate initial liquidation preference of $190 million.
IP previously launched a review of strategic alternatives for the GCF business last fall as part of its plan to sharpen its focus on sustainable packaging solutions. The transaction is expected to close by the end of the year, pending regulatory approvals.
GCF generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices, IP said.
In a statment, Rick Hoffman, Partner at AIP, said:
“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. We look forward to partnering with GCF Senior Vice President Clay Ellis and the rest of the talented and tenured management team to implement their growth vision.”
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