What's Happening?
American Industrial Partners (AIP) has announced a definitive agreement to acquire the Global Cellulose Fibers division of International Paper. This division is a leading global producer of absorbent fluff pulp used in personal care products such as diapers and feminine care items. The acquisition includes manufacturing facilities in the U.S., Canada, and Poland, employing approximately 3,300 associates. The division generated $2.5 billion in revenue in 2024. AIP aims to leverage its industrial experience to support the growth and success of the newly independent Global Cellulose Fibers business.
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Why It's Important?
The acquisition by AIP is significant as it positions the Global Cellulose Fibers division for future growth, supported by durable demand in personal care markets driven by population growth and rising incomes. This move is expected to enhance the division's ability to deliver high-quality absorbent materials globally. The transaction reflects AIP's strategy to invest in industrial businesses with strong management teams, aiming to build long-term value. The deal also highlights the importance of sustainable and high-quality pulp products in the personal care industry.
What's Next?
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2025. AIP plans to work closely with the management team of Global Cellulose Fibers to implement a growth vision and capitalize on the division's strengths, such as its sustainable wood basket and industry-leading quality.
