International Paper has agreed to sell its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion to refocus on sustainable packaging solutions.

Target Information

International Paper has announced a definitive agreement to divest its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for $1.5 billion, subject to additional closing adjustments. The GCF division employs approximately 3,300 people and operates across nine manufacturing facilities along with eight regional offices. In 2024, this business unit generated revenues of $2.8 billion, primarily producing pulp utilized in various applications such as personal care products and construction materials.

Industry Overview

The cellulose fiber industry is integral to numerous sectors, particularly in the production of biodegradable and sustainable materials. As demand for eco-friendly products rises, companies engaged in cellulose fiber production are uniquely positioned to capitalize on the shifting market dynamics. In recent years, environmental concerns have driven growth in sustainable practices, leading to increased investments in technologies that enhance production efficiency and reduce environmental impact.

Furthermore, within the U.S. market, the packaging sector, which includes containerboard, has seen robust growth as e-commerce expands and consumer preferences continue to shift towards sustainab