International Paper completes sale of global cellulose fibers business

Late last week, International Paper completed the sale of its global cellulose fibers (GCF) business unit to American Industrial Partners (AIP), a New York City-based private equity firm.

As part of the sale agreement, which originally was announced in August 2025, AIP acquired the GCF business for $1.5 billion including the issuance to Memphis, Tennessee-based International Paper of preferred stock with an aggregate initial liquidation preference of $190 million.

GCF now operates as an independent company and maintains headquarters in Memphis.

“Becoming an independent company marks an exciting new chapter for GCF, and we are proud to partner with AIP in this next phase,” says Clay Ellis, CEO of GCF. “AIP’s long-term investment approach and deep operational expertise align well with our culture and priorities, and we remain focused on serving our customers, supporting our employees and building on the strong foundation already in place.”

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GCF produces fluff pulp for personal care applications, such as towel and tissue products, and other products that promote health and wellness. Additionally, its specialty pulp is used as a sustainable raw material in construction materials, paints, coatings and more.

GCF has nine manufacturing facilities and 3,300 employees across the United States, Canada and Poland, and, according to International Paper, it generated approximately $2.8 billion in revenue in 2024, including contributions from mills that since have closed.

The business operations sold to AIP generated about $2.3 billion in revenue in 2024, excluding revenue from closed mills.

“We are pleased to officially welcome GCF to AIP and establish the company as a newly independent business,” AIP partner Rick Hoffman says. “GCF’s leading position in the global fluff pulp market, experienced workforce, well-invested facilities and strong customer relationships make it well-positioned for future growth.

“It has been a privilege to work alongside Clay Ellis and the rest of GCF’s talented and tenured management team during the carve-out from International Paper. We look forward to further implementing our combined operating agenda, rooted in our commitment to safety, quality, operational excellence, reliability and long-term value creation.”