Why does activist investor Mill Pond Capital argue that RYAM must be sold rather than remain independent?

Mill Pond Capital argues that RYAM’s assets — specialty cellulose operations serving pharmaceuticals, food, filtration, and performance materials — are 'irreplaceable' and 'exceptionally attractive' to the right strategic buyer, but that the company cannot unlock their value as a standalone entity due to its 'capital structure, overhead burden, rotating management, and a misaligned Board.' The letter states that seven-plus years of evidence confirm the problem is not the assets, but the corporate structure — citing annual losses since 2019, unmet guidance, three CEO changes (including the recent departure of Scott Sutton after less than four months), and $55–60 million in annual corporate overhead that a strategic acquirer could eliminate on day one.

What financial and governance issues does Mill Pond Capital cite to support its call for RYAM’s sale?

Mill Pond Capital cites RYAM’s consistent financial underperformance — reporting a $423 million loss from continuing operations in 2025 on $1.5 billion revenue — along with repeated failure to meet guidance, a revolving-door CEO leadership (three CEOs since 2019, with no current CEO), and excessive compensation and director fees totaling 'tens of millions of dollars.' It further highlights the company’s bloated $55–60 million annual corporate overhead as 'an enormous, fixed cost for a small-cap company,' emphasizing that this structural inefficiency — not the underlying assets — prevents value creation, and that a strategic sale would allow immediate overhead reduction and value realization.

Activist Investor Urges Sale of Cellulosics Specialist RYAM

Jun 19, 2026

Mill Pond Capital urges Rayonier Advanced Materials (RYAM) to sell its cellulosic assets due to poor standalone performance, highlighting their value for pharma and food markets. The investor cites high overhead and losses as key drivers for seeking a strategic buyer.

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