US-based private equity firm American Industrial Partners (AIP) is to acquire International Paper’s cellulose fibres unit in transaction valued at $1.5bn, according to a report by Reuters.
The deal, expected to complete by year-end 2025, marks a significant portfolio reshaping for International Paper as it sharpens its strategic focus on sustainable packaging solutions.
This move follows International Paper’s recent $7.2bn acquisition of UK-based DS Smith, signalling a broader pivot towards packaging and containerboard markets. The cellulose fibres unit, which produces fluff pulp used in hygiene and absorbent products, has been a non-core asset as the company realigns toward its packaging-led growth agenda.
In parallel with the sale, International Paper has announced a $250m investment into its Riverdale Mill facility in Selma, Alabama, aimed at converting production to containerboard to support demand in the corrugated packaging sector. The transformation will impact approximately 1,100 roles across hourly and salaried positions.
As part of its broader operational optimisation, the company will also permanently close its Savannah and Riceboro facilities in Georgia.
Shares of International Paper rose approximately 1% in early trading following the announcements.
