The Global Cellulose Fibers produces pulp for hygiene and personal care products and generated $2.8 billion in revenue in 2024.
International Paper Co. (IP) on Thursday announced the sale of its Global Cellulose Fibers (GCF) business and a series of production changes expected to reshape its footprint and cost base.
The paper giant has entered into a definitive agreement to divest its GCF unit to American Industrial Partners for $1.5 billion, which includes preferred stock with a $190 million liquidation value. The decision follows a strategic review process announced in late 2024, part of the company’s broader push to focus on sustainable packaging.
International Paper stock traded over 1% on Thursday morning. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘low’ message volume levels.
The GCF segment, which generated $2.8 billion in revenue in 2024, produces pulp for hygiene and personal care products, as well as specialty materials used in construction and industrial applications.
The business includes 3,300 employees across nine mills and eight regional offices. The sale is expected to close by the end of 2025.
“Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio,” said IP CEO Andy Silvernail.
International Paper also put forward plans to invest $250 million to convert the No.16 machine at its Riverdale mill in Selma, Alabama, to containerboard production. The upgrade is slated for completion in Q3 2026.
Additionally, the company will permanently shut down its containerboard mills in Savannah, Georgia, and Riceboro, Georgia, along with a packaging facility in Savannah and a timber operation in Riceboro. These changes will affect roughly 1,100 workers.
International Paper stock has lost over 11% in 2025 and 0.7% in the last 12 months.
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