International Paper has divested its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, aiming to enhance its focus on sustainable packaging solutions amid a challenging market environment.

Target Company Overview

International Paper, a leading packaging company based in Memphis, Tennessee, reported a net loss of $1.1 billion for the third quarter of 2025, contrasting sharply with a profit of $150 million during the same quarter in the previous year. Despite the financial setback, the company experienced a significant increase in net sales, reaching $6.22 billion, up from $3.98 billion the prior year. This growth is attributed to price realization, effective cost management, and decreased fiber expenses, according to CEO Andy Silvernail.

The company recently undertook strategic measures to enhance its operational efficiency, including closing four facilities across the United States, which affected approximately 1% of its global workforce. This strategic shift involved the shutdown of the Red River containerboard mill, which resulted in a reduction of the company’s annual containerboard capacity by 800,000 tonnes.

Industry Overview in the United States

The packaging industry in the United States is undergoing significant transformations, driven by changing consumer preferences and increasing demand for sustainable solutions. In recent