Key Takeaways
- Sector: Industrials.
- Geography: United States.
Analysis
New York, August 26, 2025 – American Industrial Partners (AIP) has entered into a definitive agreement to acquire the Global Cellulose Fibers (GCF) business from International Paper (NYSE: IP), in a strategic move that will create one of the largest independent suppliers of absorbent fluff pulp for personal care products worldwide.
GCF is a global leader in high-quality fluff pulp, softwood pulp, and specialty fiber products used primarily in hygiene applications such as diapers, feminine care, and adult incontinence products. In 2024, the business generated approximately $2.5 billion in revenue and employs over 3,300 workers across facilities in the United States, Canada, and Poland.
The transaction marks a significant industrial carve-out for International Paper as it streamlines operations. GCF’s newly independent platform will now be backed by AIP’s operational expertise and capital, giving it flexibility to grow in global markets supported by strong demand fundamentals including population growth, rising incomes, and a shift toward higher-absorbency consumer products.
AIP brings deep industrial expertise to the table, with a portfolio of businesses generating over $28 billion in annual revenue and more than 73,000 employees globally. This deal follows AIP’s recent acquisition of a specialty packaging manufacturer and adds to its growing list of investments across industrial materials and process industries.
GCF’s operations span seven pulp mills and two converting facilities across key U.S. states including North Carolina, Georgia, Virginia, and Mississippi, as well as international plants in Canada and Poland. Its vertically integrated model and long-term relationships with major hygiene brands offer a solid foundation for future expansion under AIP’s ownership.
In 2025, the pulp and fiber industry has seen increased M&A activity as companies position themselves to meet growing demand from the personal care, tissue, and packaging sectors. Earlier this year, Domtar announced a new investment in specialty pulps, while Essity exited its U.S. pulp operations to focus on branded hygiene products. These shifts reflect a reallocation of capital toward high-margin, demand-resilient niches.
The deal is expected to close in Q4 2025, pending customary regulatory approvals. BofA Securities is acting as exclusive financial advisor to AIP and providing committed debt financing. Legal advisors include Davis Polk & Wardwell LLP (transaction), Ropes & Gray LLP (financing), and Baker Botts LLP (regulatory).
Upon closing, GCF will operate independently, focused exclusively on delivering absorbent and specialty fiber products to customers in health and hygiene markets around the world.