After seven years of financial losses, Rayonier Advanced Materials Inc., or RYAM, said April 20 it is starting a formal process of exploring strategic alternatives.
The Jacksonville-based maker of cellulose specialties products also said CEO Scott Sutton, who joined the company only in January, has resigned.
RYAM formed an interim office of the chief executive comprising several top executives to run the company for now.
RYAM reported a net loss of $420 million in 2025, its seventh straight year of losses from continuing operations.
Despite the losses, RYAM’s stock recorded the best gain of any Jacksonville-based company in the first quarter this year after private equity firm American Industrial Partners disclosed it made an offer to buy the company.
AIP made the offer in November and it was rejected by RYAM’s board in December, but AIP did not disclose it until February.
AIP said it still was interested in buying the company but only if the board changed its mind and would accept the offer.
RYAM announced April 20 it has engaged Morgan Stanley & Co. as its financial adviser and Wachtell, Lipton, Rosen & Katz as its legal counsel to review strategic alternatives. But it did not say if the company is talking to AIP.
“The Board and management are focused on ways to maximize value for the Company’s stockholders. As we have recently received unsolicited indications of interest, we believe now this is the right time to evaluate options that may further advance that goal,” Board Chair Lisa Palumbo said in a news release.
RYAM said strategic options include a sale of all or part of the company but it may also continue as an independent company.
RYAM’s interim office of the CEO consists of Chief Financial Officer Marcus Moeltner and three vice presidents of the company, Michael Osborne, Christian Ribeyrolle and R. Colby Slaughter.
“Marcus, Michael, Christian and Colby are seasoned and highly capable leaders who have proven track records of success with RYAM. I am confident that they are well positioned to provide continuity and maintain momentum as the team continues to execute on our value-creating strategy, and the Board works with a leading executive search firm to identify a permanent successor,” Palumbo said.
RYAM's stock, which rose 88% in the first quarter, dropped sharply when the market opened April 20 after the announcement. It fell as much as $1.97 to $8.24 in the early minutes of trading.