#United States #Boston #Rayonier Advanced #Mill Pond Capital #RYAM

Mill Pond Capital Urges Rayonier Advanced Materials to Consider Sale

In a pointed letter addressed to the Board of Directors of Rayonier Advanced Materials Inc. (RYAM), Mill Pond Capital, a significant stakeholder owning approximately 3% of the company’s common shares, has called for a complete sale of the firm. This call to action comes in the wake of a rejected acquisition offer that presented a significant premium to current shareholders, underlining the urgent need for the board to rethink its strategic direction.

Background of the Situation

Mill Pond Capital, led by Daniel Farb, expressed discontent with the company’s management through a formal letter on June 17, 2026. The firm has been investing in Rayonier since 2019, believing in its potential but has grown increasingly frustrated by the company’s financial underperformance and structural challenges. Over the past seven years, Rayonier has reported consistent losses and struggled with leadership transitions, having cycled through three CEOs without stability in its executive ranks.

Management and Operational Challenges

Farb's detailed critique highlighted a pattern of failed leadership and mismanagement at Rayonier. The company has failed to meet its guidance repeatedly, leading to mounting costs without satisfactory returns. With fiscal losses reported every year since 2019 and a market value significantly diminished compared to its peers, the pressure is on the board to act decisively.

While RYAM carries substantial overhead costs of around $55 to $60 million annually, a strategic buyer could potentially streamline these expenses, offering an attractive pathway to amassing value that RYAM’s current management cannot realize alone.

Rejected Acquisition Offer

In November 2025, a credible buyer offered to acquire the company at a premium of 100% compared to the stock's market price. The board’s decision to reject this offer was not disclosed until the buyer revealed it through a securities filing, raising further questions about the board’s commitment to shareholder interests. Such decisions contribute to a growing sentiment among investors that the board may be misaligned with the strategic needs of the company.

Investors' Frustration and Call for Action

Shareholders have shown immense patience, hoping for a turnaround that seems increasingly unlikely under the current governance structure. Mill Pond’s letter pointedly addressed the need for ownership that recognizes and invests in the potential of RYAM’s assets; specialty cellulose is a promising area with growing demand in pharmaceuticals and performance materials.

Farb stresses that the board must act swiftly to engage with a strategic acquirer capable of realizing value where RYAM has been unable to. The letter concludes with a strong call: “The strategic review was the right call. Now finish it. Sell the Company.”

Conclusion

As pressure mounts on the board to reassess its strategy, the stakes have never been higher for Rayonier Advanced Materials. Mill Pond Capital’s public appeal reflects broader investor sentiments, emphasizing that it’s time to act decisively for the benefit of shareholders. With valuable assets at risk of underperformance, the pathway forward must involve considering a sale that positions RYAM for profitable growth under new leadership.