International Paper has agreed to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners for $1.5 billion, including $190 million in preferred stock. The GCF division, which operates nine manufacturing facilities and eight regional offices across the U.S., Canada, and Poland, will become an independent company focused on absorbent fluff pulp used in personal care products. The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals, according to both companies.
The GCF unit serves customers across markets including feminine hygiene, incontinence, infant diapers, and specialty applications like construction materials, paints, and coatings. GCF generated between $2.5 billion and $2.8 billion in 2024 revenue and employs approximately 3,300 people. International Paper’s Chief Executive Officer, Andy Silvernail, said the division had simplified its portfolio and aligned with strategic customers, making it a strong fit for American Industrial Partners’ industrial investment strategy. Partner Rick Hoffman cited GCF’s strong customer relationships, innovation, and well-invested asset base as foundations for future growth.
The sale follows International Paper’s previously announced strategic review of its cellulose business as part of its 80/20 transformation plan, which prioritizes high-value packaging segments. GCF’s performance had weakened, with net sales falling to $628 million in the second quarter of 2025, down from $643 million in the first quarter and $717 million a year earlier. Operating profit dropped to a loss of $4 million. The company also reported $11 million in after-tax costs during the second quarter related to the GCF review.
In parallel with the divestiture, International Paper will invest $250 million to convert the #16 paper machine at its Riverdale mill in Selma, Alabama, to produce containerboard. The conversion is scheduled for completion by the third quarter of 2026. At the same time, the company will permanently shut down two containerboard mills in Riceboro and Savannah, Georgia, and a box plant in Savannah. These facilities are expected to cease operations by the end of September 2025.
These closures will reduce the company’s annual containerboard capacity by approximately 1 million tons and will affect around 1,100 hourly and salaried employees. International Paper stated it will offer severance packages and outplacement support to eligible workers.
These moves come amid broader transformation efforts following International Paper’s $5.8 billion acquisition of DS Smith in early 2025, which added scale in both North America and EMEA regions. The company reported $6.8 billion in second-quarter 2025 net sales and $105 million in adjusted operating earnings. Silvernail said the company remains focused on cost advantages, customer service, and supply strength as it reshapes its portfolio and positions itself for long-term success.
