Two industrial acquisitions announced this week will impact the Golden Triangle’s manufacturing landscape, with International Paper selling its Global Cellulose Fibers business and Steel Dynamics acquiring full ownership of New Process Steel.
In a Thursday press release, International Paper announced GCF will sell to private equity firm American Industrial Partners for $1.5 billion. International Paper operates a GCF mill in on Carson Road in Lowndes County.
The sale comes after International Paper announced last year it was exploring alternatives for operating the pulp producer as it shifts its focus to sustainable packaging solutions. The transaction is expected to close by the end of 2025 once regulatory approvals are completed.
The pulp GCF produces is used in personal care products, like diapers and tissue products, and to serve as a sustainable raw material in construction materials like paints and coatings. Last year, the company, employing roughly 3,300 people globally, generated approximately $2.5 billion in revenue.
International Paper CEO Andy Silvernail said he’s pleased to see the “strong business” transitioning to AIP, given the firm’s focus on growing industrial businesses.
“Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio,” Silvernail said in the press release. “These actions, combined with its talented and committed team, made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership.”
Steel Dynamics announced in a press release issued Tuesday it will acquire the remaining 55% equity interest in New Process Steel, a metals solutions and distribution supply-chain management company with a plant in Columbus.
CEO and Chairman Mark Millett said Steel Dynamics has enjoyed a strong customer relationship with New Process Steel since its founding.
“This acquisition expands our exposure to value-added manufacturing opportunities, while continuing to serve our other long-standing flat rolled steel customer needs,” Millett said in the press release. “With this next step, we believe New Process will continue to have a number of opportunities for value-added manufacturing growth.”
New Process Steel employs about 1,275 people across the continent and is Steel Dynamics’ single largest flat roll steel customer.
Steel Dynamics acquired a 45% minority stake in the metal processor in 2022 with the goal of expanding the company’s exposure to more manufacturing opportunities.
New Process Steel CEO Richard Fant said he is optimistic about the sale.
“I believe this is a great opportunity for New Process to grow our value-added metals solutions and supply-chain strategy to continue to provide our customers with exceptional service and value,” Fant said in the press release. “The entire New Process team and I are excited for this strategic step.”
The transaction is still subject to regulatory approvals and customary closing conditions.
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