International Paper (IP) has completed the sale of its Global Cellulose Fibers (GCF) business to funds affiliated with American Industrial Partners (AIP) for US$1.5 billion. According to a press release, the agreement includes the issuance of preferred shares to IP, with an aggregate initial liquidation preference of US$190 million.
The transaction comes at a time when the company’s shares are appreciating, trading near their 52-week high, with an estimated market capitalization of US$22.8 billion.
The GCF business focuses on the production of cellulose pulp for applications such as towel and tissue products, diapers, and other personal care items. In 2024, the operation generated approximately US$2.3 billion in revenue, excluding mills that were later closed. Considering the entire segment, revenue totaled US$2.8 billion last year.
The operations acquired by AIP include nine industrial facilities and eight regional offices, with a global workforce of approximately 3,300 employees.
