International Paper Sells Global Cellulose Fibers Business to Focus on Sustainable Packaging Solutions
- International Paper sold its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion on January 23, 2026.
- The divestiture allows International Paper to concentrate on its core packaging operations and sustainable solutions.
- The sale supports International Paper's financial strength while positioning GCF for growth and innovation under AIP's ownership.
International Paper Completes Strategic Sale of Global Cellulose Fibers Business
On January 23, 2026, International Paper Company, a leader in sustainable packaging solutions, finalizes the sale of its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for $1.5 billion. This strategic divestiture allows International Paper to streamline its operations and focus on its core competencies in packaging. The sale includes preferred stock with a liquidation preference of $190 million, reflecting International Paper's commitment to maintaining a strong financial position while pursuing new growth opportunities. The GCF business, a significant player in the production of high-quality pulp for personal care products, generates approximately $2.3 billion in revenue from its operations, which include nine manufacturing facilities across the United States, Canada, and Poland.
The GCF business specializes in producing absorbent fluff pulp, which is essential for various personal care applications such as feminine hygiene products, diapers, and incontinence products. This sector has witnessed growing demand due to increasing consumer awareness of health and wellness, aligning with International Paper's broader commitment to sustainability. By divesting GCF, the company positions itself to concentrate on its packaging solutions, which are designed to enhance product safety while promoting environmental responsibility. The sale allows International Paper to leverage its resources and expertise in sustainable packaging while enabling GCF to pursue operational excellence as an independent entity under AIP's ownership.
Rick Hoffman, Partner at AIP, expresses optimism about the acquisition, highlighting GCF's strong market presence and experienced workforce as vital elements for future growth. Clay Ellis, CEO of GCF, shares enthusiasm about the transition to independence, emphasizing how the new alignment with AIP’s long-term investment strategy can foster innovation and operational improvements. With AIP’s transformative Operating Agenda prioritizing safety and quality, GCF is poised to enhance its capabilities and customer relationships, further solidifying its status in the global market.
In tandem with this sale, International Paper continues to expand its footprint within the packaging space, having recently acquired DS Smith in 2025. This acquisition reinforces the company's leadership position in both North American and EMEA markets, allowing it to better meet the increasing demand for sustainable packaging solutions. The company’s ongoing commitment to environmental stewardship and operational excellence remains a cornerstone of its business strategy, ensuring that it stays at the forefront of the industry.
As International Paper pivots towards its core packaging business, the sale of the GCF division marks a crucial step in its evolution, allowing for enhanced focus on sustainable practices and innovative solutions that support health and wellness. The future looks promising for both International Paper and GCF, as they embark on their respective paths towards growth and operational excellence in a rapidly changing market landscape.