BofA warns Fed risks policy mistake with early rate cuts
NEW YORK - American Industrial Partners (AIP) announced Thursday it has signed a definitive agreement to acquire International Paper’s (NYSE:IP) Global Cellulose Fibers (GCF) division, a leading producer of absorbent fluff pulp used in personal care products. International Paper, a prominent player in the Containers & Packaging industry with a market capitalization of $24.9 billion, has maintained dividend payments for 55 consecutive years. According to InvestingPro data, the company currently offers a dividend yield of 3.94%.
The transaction, expected to close in Q4 2025, will establish GCF as an independent company. Financial terms were not disclosed in the press release statement.
GCF operates seven pulp mills and two converting facilities across the U.S., Canada, and Poland, employing approximately 3,300 people. The division generated approximately $2.5 billion in revenue in 2024, according to the announcement.
"With decades of highly relevant industrial and manufacturing experience, AIP is the right partner to back our growth and success as an independent company," said Clay Ellis, Senior Vice President of GCF at International Paper.
Rick Hoffman, Partner at AIP, noted that GCF’s "large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities" position the business for future growth.
GCF produces fluff pulp, softwood pulp, and modified fibers used primarily in feminine care products, incontinence products, and infant diapers.
The acquisition requires regulatory approvals and other customary closing conditions. BofA Securities is serving as financial advisor to AIP and providing committed financing for the transaction.
AIP currently manages approximately $17 billion in assets and focuses on industrial businesses across various sectors. Its portfolio companies generate annual revenues of approximately $28 billion and employ 73,000 people as of June 30, 2025. International Paper currently maintains a Financial Health Score of "FAIR" according to InvestingPro, with analysts predicting profitability improvement in the current year despite recent challenges.
In other recent news, International Paper reported its Q2 2025 earnings, which revealed a significant miss in earnings per share (EPS), posting $0.20 against a forecast of $0.39. This marked a 48.72% negative surprise for investors. However, the company exceeded revenue expectations, reaching $6.77 billion compared to the anticipated $6.57 billion. Following these results, JPMorgan downgraded International Paper’s stock from Overweight to Neutral, citing the earnings miss and particular weakness in the EMEA segment. The firm also slightly lowered its price target to $54.00 from $55.00. In contrast, UBS maintained its Buy rating with a $60.00 price target, highlighting the company’s new business wins and cost savings. UBS analyst Anojja Shah suggested that investors might not be fully recognizing these achievements. These developments reflect ongoing investor interest and varied analyst perspectives on International Paper’s performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.