Memphis, TN - International Paper has entered into a definitive agreement to sell its Global Cellulose Fibers (GCF) business unit to American Industrial Partners (AIP), a private equity firm, in a transaction valued at approximately $1.5 billion. The deal signifies a major strategic shift for the paper and packaging giant as it moves to sharpen its focus on core operations.
Strategic Shift and Transaction Details
The sale, which includes the issuance of preferred stock with an initial liquidation preference of $190 million, aligns with a strategic review initiated by International Paper in the fall of last year. At that time, the company announced it was exploring strategic alternatives for the GCF division. This move is a clear step in the company’s broader plan to streamline its portfolio and dedicate greater resources to its expanding sustainable packaging solutions segment.The transaction is anticipated to be finalized before the end of the year, pending the receipt of necessary regulatory approvals and other standard closing conditions.
Profile of the Global Cellulose Fibers Business
The GCF business is a leading global producer of high-quality, absorbent fluff pulp. This material is a critical component in a wide array of essential hygiene and health products, including diapers, feminine care items, incontinence products, as well as towel and tissue paper. Beyond personal care, the division also manufactures specialty pulp that serves as a sustainable raw material for various industrial applications, such as construction materials, paints, and coatings.The business represents a significant global operation. In 2024, the GCF unit generated annual revenues of $2.8 billion. It employs a workforce of 3,300 people worldwide, supported by a network of nine manufacturing facilities and eight regional offices. This divestiture transfers this extensive operational footprint to American Industrial Partners.
Media Contact
Company Name: Mengen (Xiamen) Hygiene Products Co., Ltd.
Email:Send Email
Country: China
Website: https://www.mengenhygiene.com/