Memphis, Tennessee, January 24, 2026
International Paper has completed the sale of its Global Cellulose Fibers (GCF) business to American Industrial Partners for $1.5 billion, part of a strategic shift towards core operations. The transaction includes preferred stock with an initial liquidation preference of $190 million. The GCF business, a significant revenue generator for International Paper, produced pulp for personal care items and had 3,300 employees across nine facilities. This sale is expected to enhance both companies’ operational frameworks and financial stability.
Memphis, Tennessee – International Paper has successfully completed the sale of its Global Cellulose Fibers (GCF) business to funds affiliated with American Industrial Partners (AIP) for $1.5 billion. This significant transaction, finalized on January 23, 2026, also includes the issuance of preferred stock to International Paper with an initial liquidation preference of $190 million.
The GCF business, which produces pulp utilized in making towel and tissue products, diapers, and other personal care items, generated approximately $2.3 billion in revenue in 2024, excluding revenue from mills that have since closed. Overall, the entire GCF segment reported $2.8 billion in revenue last year. The operations acquired by AIP encompass nine manufacturing facilities and eight regional offices, with a workforce of around 3,300 employees.
International Paper, headquartered in Memphis, has reported strong financial results with net sales of $18.6 billion for 2024. The company’s expansive operations span over 30 countries and employ more than 65,000 team members globally.
As part of a strategic realignment, International Paper aims to focus on its core operations. This move follows the acquisition of DS Smith in 2025, which further boosted its presence in North American and EMEA (Europe, Middle East, and Africa) regions.
American Industrial Partners, a prominent global industrials investor with around $17 billion in assets under management, is known for investing in a diverse array of industrial businesses. The acquisition of GCF is expected to enhance both companies’ portfolios, presenting AIP with access to a high-quality and high-growth division while providing GCF with AIP’s financial backing and industry expertise.
This strategic transaction allows International Paper to redirect its focus on its principal business areas, while AIP positions itself to capitalize on the growth potential within the absorbent pulp industry.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Transaction Value | $1.5 billion, plus preferred stock with an initial liquidation preference of $190 million |
| GCF Revenue in 2024 | Approximately $2.3 billion, excluding revenue from closed mills; entire GCF segment generated $2.8 billion |
| Number of Employees | Approximately 3,300 employees globally |
| Number of Manufacturing Facilities | Nine manufacturing facilities and eight regional offices |
| International Paper’s Net Sales in 2024 | $18.6 billion |
| AIP’s Assets Under Management | Approximately $17 billion |
| International Paper’s Global Workforce | More than 65,000 team members globally |
| International Paper’s Operations | Over 30 countries |
Frequently Asked Questions (FAQ)
What is the Global Cellulose Fibers (GCF) business?
The Global Cellulose Fibers (GCF) business is a division of International Paper that produces pulp for applications including towel and tissue products, diapers, and other personal care items. In 2024, it generated approximately $2.3 billion in revenue, excluding revenue from mills that have since closed. The entire GCF segment had generated $2.8 billion in revenue last year.
Who is American Industrial Partners (AIP)?
American Industrial Partners is a global industrials investor with approximately $17 billion in assets under management. The firm focuses on investing in industrial businesses across various sectors, including aerospace and defense, automotive, building products, capital goods, chemicals, industrial services, industrial technology, logistics, metals and mining, and transportation.
Why did International Paper sell the GCF business?
The sale of the GCF business is part of International Paper’s strategic realignment to focus on its core operations. In 2025, the company acquired DS Smith, expanding its presence in the North American and EMEA (Europe, Middle East, and Africa) regions.
What are the financial terms of the sale?
The transaction was completed for $1.5 billion, including the issuance of preferred stock to International Paper with an initial liquidation preference of $190 million.
What is the expected impact of this acquisition?
The acquisition of GCF by AIP is expected to enhance both companies’ portfolios, with AIP gaining access to a high-quality, high-growth division, and GCF benefiting from AIP’s expertise and financial backing.
Deeper Dive: News & Info About This Topic
HERE Resources
Exploring Housing Market Trends in the Memphis Metro Area
xAI Investment: $20 Billion Data Center in Mississippi
East Memphis Property Sold to Colorado-Based Investment Firm
Bartlett Proposes Housing Development on Former Golf Course
International Paper Partners with Infosys, Restructures Memphis Workforce
AXS Opportunity Fund Acquires International Paper IV Building in Memphis
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
