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Global ingredients and biosciences company International Flavors & Fragrances (IFF) has agreed to sell its Food Ingredients business to funds advised by private markets firm CVC Capital Partners in a transaction valued at approximately $4.3 billion.
The deal values the Food Ingredients division at roughly 10 times EBITDA. IFF will retain an approximately 10% minority equity stake in the business, representing about $200 million, and will hold a board seat in the newly formed company following the close of the transaction.
IFF said the divestiture is part of a broader portfolio optimisation strategy designed to streamline operations, strengthen cash flow generation, and increase investment in higher-growth areas, including Taste, Scent, and Health & Biosciences.
Erik Fyrwald, CEO of IFF, said: “This transaction represents an important strategic milestone in our ongoing portfolio optimisation initiative."
The Food Ingredients business includes a broad portfolio of texturants, emulsifiers, plant-based solutions and speciality ingredients serving multinational food and beverage manufacturers worldwide.
The division generated nearly $3.1 billion in sales and approximately $430 million in EBITDA in 2025.
"By simplifying our portfolio to where we can create the greatest value, IFF will accelerate innovation, drive investment in R&D, and further integrate our biotechnology and naturals capabilities more effectively across our global platform," Fyrwald added.
Industry analysts have increasingly viewed speciality ingredient suppliers as attractive acquisition targets due to rising global demand for clean-label formulations, plant-based products and functional food innovation. CVC cited these long-term consumer and market trends as a key rationale behind the acquisition.
Lorne Somerville, managing partner and co-head of North American private equity at CVC, said: “The business has built a strong position in an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean-label products."
The transaction continues a multi-year restructuring effort by IFF.
Including the pending sale, the company said it has divested 13 non-core businesses over the past several years, generating nearly $10 billion in gross proceeds aimed at reducing debt and refocusing investment priorities.
Following the divestiture, IFF will operate around three primary business platforms:
Taste: Flavour systems and solutions for global food and beverage manufacturers
Scent: Fine fragrance, consumer fragrance and fragrance ingredient technologies
Health & Biosciences: Probiotics, enzymes, cultures and bioactive ingredient solutions
IFF expects to receive approximately $3.8 billion in net cash proceeds at closing.
The company plans to prioritise debt reduction, targeted share repurchases and reinvestment into high-return growth opportunities across its remaining businesses.
While the transaction is expected to be dilutive to adjusted earnings per share during the first 12 months after closing, IFF said the long-term benefits of a simplified portfolio and stronger balance sheet outweigh the near-term impact.
The company also reaffirmed its previously issued 2026 guidance, projecting full-year sales between $10.5 billion and $10.8 billion and adjusted operating EBITDA in the range of $2.05 billion to $2.15 billion.
The transaction is expected to close by the end of the second quarter of 2027, subject to regulatory approvals and customary closing conditions.
J.P. Morgan Securities LLC and BofA Securities are serving as financial advisors to IFF, while Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel.
