International Paper has sold its Global Cellulose Fibres (GCF) business to New York–based private equity firm American Industrial Partners for US $1.5 billion, in one of the largest recent deals in the global specialty pulp sector.
Wood Central understands that divestment forms part of International Paper’s strategy to streamline its portfolio and refocus on packaging and containerboard following its acquisition of DS Smith last year, with the sale a key step in a long-term repositioning that has seen the company exit non‑core operations and concentrate capital on higher‑growth packaging markets.
The GCF division manufactures pulp used in hygiene, personal care, and absorbent products, as well as construction‑grade fibre materials. International Paper said the unit produces “safe, high‑quality pulp for a wide range of applications such as towel and tissue products, diapers, feminine care, incontinence, and other personal care products that promote health and wellness.”
AIP said the acquisition gives GCF a strong platform for long‑term growth as global demand for specialty cellulose fibres continues to rise. “We are pleased to officially welcome GCF to AIP and establish the company as a newly independent business,” according to Rick Hoffman, a Partner at AIP, yesterday. “The GCF business has a leading position in the global fluff pulp market, experienced workforce, well‑invested facilities, and strong customer relationships, making it well-positioned for future growth.”
According to Clay Ellis, CEO of the GCF, the decision to spin off the business marks a major milestone: “Becoming an independent company marks an exciting new chapter for GCF, and we are proud to partner with AIP in this next phase,” he said. “AIP’s long‑term investment approach and deep operational expertise align well with our culture and priorities.”
The timing of the sale coincides with a rapidly expanding global cellulose fibre market, driven by rising demand for renewable, biodegradable, and low‑carbon materials. Analysts expect the sector to grow exponentially over the next decade as manufacturers shift away from fossil‑fuel‑derived synthetics and respond to tightening environmental regulations.
As for International Paper, a spokesperson for the business said the sale “supports our strategy to strengthen our core businesses and enhance long‑term value for shareholders,” adding that proceeds will be used to reinforce its balance sheet and reinvest in higher‑growth packaging markets.
