International Paper announced plans to sell its global cellulose fibers business to private equity firm American Industrial Partners for $1.5 billion. The transaction is expected to close in the upcoming months, subject to customary regulatory approvals and closing conditions.
The sale marks a strategic shift for International Paper as it focuses on its core packaging and pulp operations. The global cellulose fibers segment primarily produces specialty fibers used in nonwoven products, hygiene items, and other industrial applications.
American Industrial Partners, known for investments in manufacturing and industrial sectors, aims to expand its portfolio through this acquisition. The move is part of a broader trend among industrial firms to divest non-core businesses and strengthen focus on primary operational areas.
International Paper will use the proceeds from the sale to further its corporate objectives, including debt reduction and investment in growth initiatives. Both companies have expressed confidence that the deal will create value for stakeholders and support long-term growth strategies.