International Paper has completed the sale of its Global Cellulose Fibers (GCF) business to funds affiliated with American Industrial Partners (AIP) for $1.5 billion, marking a major portfolio step as the company continues to sharpen its focus on sustainable packaging. The deal transfers ownership of a large-scale pulp platform that serves essential consumer categories, while also providing International Paper with additional consideration tied to preferred equity.
Under the terms of the transaction, the $1.5 billion purchase price includes the issuance of preferred stock to International Paper, carrying an aggregate initial liquidation preference of $190 million. That structure gives International Paper a preferred stake alongside the cash proceeds, creating potential ongoing value while allowing the company to exit day-to-day ownership of the business.
GCF is a global producer of high-quality pulp used across everyday consumer and specialty applications. Its absorbent pulp is a core input for products such as towels and tissues, diapers, feminine care, and incontinence solutions, supporting large, durable end markets tied to hygiene and health. Beyond these staples, the business also supplies specialty pulp used as a sustainable raw material in a range of industrial and building-related products, including construction materials, paints, and coatings, giving the platform exposure to diversified end uses beyond traditional consumer goods.
International Paper said the GCF segment generated $2.8 billion in revenue in 2024, a figure that includes contributions from mills that have since closed. On a go-forward basis, excluding revenue from those closed mills, the operations sold to AIP generated approximately $2.3 billion in 2024 revenue. The scale of the business is supported by a sizable operating footprint and workforce, employing about 3,300 people globally across nine manufacturing facilities and eight regional offices, reflecting both production intensity and a distribution and service network designed to support customers in multiple geographies.
For International Paper, the divestiture fits within a broader strategic repositioning. The company is headquartered in Memphis, with EMEA headquarters in London, and reported 2024 net sales of $18.6 billion while operating in more than 30 countries. International Paper has also highlighted its 2025 acquisition of DS Smith as part of its effort to build a larger, packaging-focused platform across North America and EMEA, reinforcing a strategy centered on scale, integration, and emphasis on packaging markets. With the GCF sale now completed, International Paper reduces its exposure to a separate pulp category and can further concentrate resources and capital allocation on its packaging priorities.
