IFF announced that it has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners in a transaction valuing the business at approximately $4.3 billion. The deal represents an enterprise value-to-EBITDA multiple of approximately 10x. As part of the transaction, IFF will retain an approximately 10% minority equity interest in the business, valued at roughly $200 million, allowing the company and its shareholders to participate in future value creation while maintaining collaboration with the Food Ingredients business.
The transaction is a major step in IFF’s ongoing portfolio transformation strategy and is expected to sharpen the company’s focus on its innovation-driven Taste, Scent, and Health & Biosciences businesses. Following completion of the transaction, IFF expects to benefit from improved cash flow characteristics, greater financial flexibility, and a stronger position to pursue long-term growth and profitability objectives.
IFF’s Food Ingredients business is a leading supplier of texturants, emulsifiers, plant-based solutions, and specialty ingredients for multinational food and beverage customers. In 2025, the business generated nearly $3.1 billion in annual sales and approximately $430 million in EBITDA.
Over the past several years, IFF has streamlined its operations through a series of divestitures. Including this transaction, the company will have divested 13 non-core businesses, generating nearly $10 billion in gross proceeds. The company said those proceeds have supported balance sheet improvements and investments in higher-return growth opportunities.
Following the sale, IFF will focus on three core business segments:
- Taste, technology-enabled flavor solutions for food and beverage customers.
- Scent, including fine fragrance, consumer fragrance, and fragrance ingredients.
- Health & Biosciences, including probiotics, enzymes, cultures, and bioactive health ingredients.
IFF expects to receive approximately $3.8 billion in net cash proceeds at closing after accounting for retained equity, transaction-related costs, and taxes. The company plans to use the proceeds primarily for debt reduction, targeted share repurchases authorized by its Board of Directors, and reinvestment into high-return growth opportunities across its core businesses.
While the transaction is expected to be dilutive to adjusted earnings per share during the first 12 months after closing, IFF believes the benefits of a more focused portfolio, enhanced balance sheet, and stronger cash generation profile outweigh the near-term impact. The company also reiterated its previously announced 2026 guidance, including expected sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA 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. As part of its retained ownership stake, IFF will hold a board seat in the newly formed company.
KEY QUOTES:
“This transaction represents an important strategic milestone in our ongoing portfolio optimization initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments. 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. Importantly, by retaining a minority stake in Food Ingredients, we will continue to participate in the future upside of a strong business under dedicated ownership. This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.
We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business. We are confident CVC is the right owner for its next chapter and that this transaction creates significant value for IFF shareholders while giving Food Ingredients an excellent platform for future success.”
Erik Fyrwald, CEO, IFF
“We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. portfolio. 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. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth.”
Lorne Somerville, Managing Partner And Co-Head Of North American Private Equity, CVC
“The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth. We look forward to partnering with the team and with IFF as co-shareholders to accelerate the next phase of growth through scale and commercial expansion.”
James Christopoulos, Partner, CVC
