International Paper announced the long-anticipated sale of its global cellulose fibers business on Thursday to become a pure-play packaging company. Private equity firm American Industrial Partners agreed to purchase the business in a $1.5 billion transaction set to close by year’s end.
IP announced last year it was exploring alternatives and likely a sale for the business as it sought to streamline its portfolio’s focus on packaging solutions under the new leadership of CEO Andy Silvernail. When Silvernail was appointed in 2024, analysts speculated that he might pursue portfolio changes and consider other options for the GCF segment.
The GCF business generated $2.79 billion in revenue for IP in 2024, about 15% of the company’s overall net sales last year. GCF creates pulp for products like towels, tissues, diapers and other personal care items. Its specialty pulp also ends up in construction materials, paints and coatings, IP explained. The business has 3,300 employees globally, with nine manufacturing facilities and eight regional offices, IP reported.
“GCF is a strong business, and I'm pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses,” Silvernail said in the announcement.
Rick Hoffman, partner at AIP, added in a statement that the business “is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities.”
Numerous major packaging companies, including IP, have shed non-core assets this year. IP announced this year it was exiting the molded fiber market. Greif recently announced it was offloading its containerboard business to Packaging Corporation of America. Amcor also revealed last week that it’s considering selling its North American beverage business. Sonoco confirmed in July that it was preparing its ThermoSafe temperature-controlled packaging business for a sale process in the second half of 2025.
