Mill Pond Capital Urges Full Sale of Rayonier Advanced Materials (RYAM)

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 hour ago

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RYAM+1.9%

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Source: seekingalpha

Shareholder Pressure: Mill Pond Capital urged Rayonier Advanced Materials to pursue a full sale, arguing that combining the business with a strategic acquirer could eliminate duplicative overhead, allowing the company to not only operate but thrive.
Ownership Background: Mill Pond has held approximately a 3% stake in RYAM since 2019, with Farb expressing dissatisfaction over being unable to present his views to the broader board after seven years of waiting for a different outcome.
Strategic Review Progress: RYAM initiated a strategic review in April and announced the resignation of its president and CEO, highlighting the challenges and opportunities the company faces in its transformation efforts.
Acquisition Proposal: RYAM previously rejected an offer of $11 to $12 per share in February, while American Industrial Partners made a similar cash bid in November, indicating differing market perceptions of the company's value.

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Analyst Views on RYAM

Wall Street analysts forecast RYAM stock price to rise

2 Analyst Rating

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 8.960

Low

9.00

Averages

9.00

High

9.00

Current: 8.960

Low

9.00

Averages

9.00

High

9.00

RBC Capital

Outperform

maintain

$9 -> $14

2026-03-05

Reason

RBC Capital

Price Target

$9 -> $14

AI Analysis

2026-03-05

maintain

Outperform

Reason

RBC Capital raised the firm's price target on Rayonier Advanced Materials to $14 from $9 and keeps an Outperform rating on the shares. RBC is positive on the company's messaging with its results as reflecting a significant acceleration in the value-over-volume and repricing strategy that had begun to play out over the past few years, and believes the positive market response was directionally appropriate, the analyst tells investors in a research note.

About RYAM

Rayonier Advanced Materials Inc. specializes in cellulose-based technologies, including cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. The Company's segments include Cellulose Specialties, Cellulose Commodities, Biomaterials, Paperboard and High-Yield Pulp. The Company's specialized assets, capable of creating cellulose specialties products, are also used to produce commodity fluff pulp, biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. Its commodity fluff is typically used in consumer products such as baby diapers. Its tall oil soap is used as feedstock for producing crude tall oil. It manufactures products for the paper and packaging markets. It is a multi-ply paperboard producer in North America. It produces its high-yield pulp primarily from hardwood aspen, maple and birch species. It has manufacturing operations in the United States, Canada and France.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Mill Pond Capital Urges Sale of Rayonier Advanced Materials

6 hours agoYahoo Finance

Frequent Management Changes: RYAM has reported losses from continuing operations every year since 2019 and has cycled through three CEOs, currently lacking a permanent CEO, which destabilizes governance and undermines investor confidence.
High Fixed Costs: The company incurs approximately $55 to $60 million in annual corporate overhead, a significant burden for a small-cap firm, which a strategic acquirer could reduce immediately, thereby enhancing company value.
Rejected Acquisition Proposal: In November 2025, RYAM's board rejected a buyout offer of $11 to $12 per share, representing a 100% premium, a decision not disclosed to shareholders, indicating poor communication between the board and investors.
Unrealized Asset Value: RYAM's assets are irreplaceable in growing global markets such as pharmaceuticals and food, yet the company trades at a fraction of its multi-billion-dollar replacement cost due to structural and management issues that prevent unlocking their full value.