International Paper Sells Global Cellulose to American Industrial Partners for Strategic Changes

International Paper is selling its Global Cellulose Fibers business to American Industrial Partners for an undisclosed sum. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions. The sale is part of International Paper's strategic changes to focus on its core businesses.

International Paper has announced the sale of its Global Cellulose Fibers business to American Industrial Partners (AIP) for an undisclosed sum. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions. This strategic move is part of International Paper's broader initiative to focus on its core businesses and enhance its operational efficiency [1].

The sale of the Global Cellulose Fibers business aligns with International Paper's long-term strategy to streamline operations and concentrate on high-growth segments within its fiber-based packaging portfolio. By divesting this business, International Paper aims to improve its financial flexibility and better position itself to capitalize on market trends in sustainable packaging [2].

American Industrial Partners, a private equity firm with expertise in the paper and packaging industry, will take over the Global Cellulose Fibers business. The acquisition allows AIP to expand its portfolio and strengthen its presence in the global market for cellulose fibers. The transaction underscores the growing demand for sustainable packaging solutions, which is a key focus area for both companies [3].

International Paper's recent strategic initiatives, including the planned conversion of its No. 16 paper machine at the Riverdale mill to produce containerboard, highlight its commitment to operational reliability and long-term growth. These moves demonstrate the company's ability to adapt to changing market conditions and align its product mix with sustainable packaging trends [4].

The sale of the Global Cellulose Fibers business is expected to have a positive impact on International Paper's financial performance. By reducing its debt and improving operational efficiency, the company aims to enhance its cash flow and generate value for shareholders. The transaction also allows International Paper to focus on its core competencies and execute on its asset optimization targets [5].

In conclusion, the sale of the Global Cellulose Fibers business to American Industrial Partners represents a strategic move for International Paper. By divesting this business, the company aims to improve its operational efficiency, enhance its financial flexibility, and better position itself to capitalize on market trends in sustainable packaging. This transaction aligns with International Paper's broader initiative to focus on its core businesses and execute on its long-term growth strategy.

References:
[1] International Paper Sells Global Cellulose Fibers Business to American Industrial Partners [https://www.globenewswire.com/news-release/2025/09/02/3142608/0/en/International-Paper-Sells-Global-Cellulose-Fibers-Business-to-American-Industrial-Partners.html]
[2] International Paper Investment Narrative Recap [https://simplywall.st/stocks/us/materials/nyse-ip/international-paper/news/how-international-papers-ip-riverdale-mill-conversion-could]
[3] American Industrial Partners Announces Acquisition of Global Cellulose Fibers Business [https://www.americanindustrialpartners.com/press-releases/2025/09/02/ai-announces-acquisition-of-global-cellulose-fibers-business]
[4] International Paper's Riverdale Mill Conversion [https://simplywall.st/stocks/us/materials/nyse-ip/international-paper/news/how-international-papers-ip-riverdale-mill-conversion-could]
[5] International Paper's Strategic Changes [https://simplywall.st/stocks/us/materials/nyse-ip/international-paper/news/international-papers-strategic-changes]