Rayonier Advanced Materials: The Stock Still Trades Below A Rejected Cash Bid

Rayonier Advanced Materials is positioned for a potential sale, with American Industrial Partners accumulating a stake and a formal board-led review underway.

Specialty cellulose pricing is robust, up 17% y/y to $2,040/ton, and two new tariff actions protect RYAM as the sole US producer of high-purity dissolving pulp.

Despite strong specialty performance, RYAM’s consolidated results are weighed down by commodity losses and high leverage, with net secured leverage at 4.3x.

I’m bullish: The rejected $11–$12/share bid, strategic buyer interest, and tariff tailwinds create a compelling risk/reward despite cyclical and balance sheet risks.

In November, a private equity firm running $17 billion offered $11 to $12 a share in cash for every share of Rayonier Advanced Materials (RYAM), with no financing to arrange. The board said no. Eight months later, the stock closed at $8.61.