International Paper Completes Major Sale of Global Cellulose Fibers Business
Memphis, Tenn. — Jan. 23, 2026
In a significant shift for the company, International Paper (NYSE: IP) has announced the complete sale of its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for a staggering $1.5 billion. This strategic move is indicative of International Paper’s commitment to refocusing its operations and enhancing its portfolio in sustainable packaging solutions. As part of the sale agreement, AIP will also issue preferred stock to International Paper, boasting an initial liquidation preference of $190 million.
What is the Global Cellulose Fibers Business?
The GCF division is crucial in producing high-quality pulp used in various personal care products, including towels, tissues, diapers, and feminine care items. It’s a segment that not only promotes health and wellness but also aligns with growing consumer demand for sustainable materials. The specialty pulp manufactured in this division is utilized in construction materials, paints, and coatings, showcasing its versatility and importance across different industries.
Financial Insights
In 2024, the Global Cellulose Fibers segment generated a sizable revenue pool of $2.8 billion, reflecting its robust market position. However, with the planned closure of several mills, the operations sold to AIP accounted for approximately $2.3 billion in revenue that year. The GCF business employs around 3,300 individuals globally, operating through nine manufacturing facilities and eight regional offices, which highlights its significant role in providing jobs and contributing to local economies.
The Strategic Rationale for the Sale
The decision to divest the GCF business aligns with International Paper’s long-term strategy to enhance its focus on sustainable packaging. As consumer preferences shift towards eco-friendly and responsible products, the company aims to leverage its strengths in these areas while allowing AIP to capitalize on the established GCF operations. The sale is expected to provide International Paper with opportunities to invest in growth areas that may yield higher returns in the constantly evolving market landscape.
International Paper: A Leader in Sustainable Practices
International Paper, headquartered in Memphis, Tennessee, is recognized as a global leader in sustainable packaging solutions. With a workforce of more than 65,000 employees and operations in over 30 countries, the company’s reach is extensive. In 2024, the firm reported net sales of $18.6 billion, a testament to its strong market presence and operational efficacy.
In 2025, International Paper took another major step by acquiring DS Smith, further solidifying its position as a leader in the North American and EMEA markets. This move not only enriches its portfolio but also enhances its capabilities to meet specific customer needs while promoting sustainability.
A Path Forward
As International Paper pivots towards an integrated approach focused on sustainable packaging solutions, the sale of the GCF business signifies a broader trend within the industry. Companies are increasingly aware of the importance of cost efficiency and environmental responsibility in maintaining competitiveness. International Paper’s proactive approach in adapting to market shifts ensures it remains a relevant player in the packaging industry.
With ongoing innovation and a commitment to sustainable practices, International Paper is well poised to navigate the challenges and opportunities that lie ahead. The company continues to seek out strategic partnerships and investments that will benefit not just its financial health but also the overall well-being of the planet.
For further information about International Paper and its comprehensive offerings, you can visit their official site at internationalpaper.com.