Shares of Rayonier Advanced Materials Inc. (NYSE:RYAM) climbed about 13% after private equity firm American Industrial Partners (AIP) disclosed it had built a 5.1% position in the specialty materials producer.
According to a Schedule 13D filing, AIP purchased roughly 3.4 million shares for about $25.4 million, excluding brokerage fees. The investment was financed using the firm’s working capital and existing credit facilities.
The move comes months after AIP’s failed takeover approach. In November, the firm submitted an unsolicited proposal to acquire Rayonier Advanced Materials for $11 to $12 per share in cash. The company’s board rejected the offer in December, saying the proposal did not serve the best interests of the business or its shareholders.
Despite the rejection, AIP moved forward with acquiring shares, describing the investment as an attractive opportunity aligned with its fund’s strategy of pursuing capital appreciation.
The filing also outlined AIP’s longer-term strategic vision, which includes the potential combination of Rayonier Advanced Materials with Global Cellulose Fibers, a fluff pulp producer AIP agreed to purchase from International Paper in August. American Industrial Partners manages approximately $17 billion in assets and is currently deploying capital from a $5.1 billion investment fund.
AIP noted it does not plan to pursue transactions opposed by Rayonier’s board but indicated it would participate if the company explores a potential sale. The firm added it may engage with management and fellow shareholders to discuss strategic alternatives and initiatives aimed at enhancing shareholder value.