IFF divests food ingredients unit to CVC Capital Partners in US$4.3B strategic deal
The deal is designed to sharpen IFF’s focus on its higher-growth and higher-margin businesses while strengthening its balance sheet and enhancing long-term shareholder value.
USA – International Flavors & Fragrances Inc. (IFF), a global leader in flavors, fragrances, food ingredients, and health and biosciences, announced that it has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners, a leading global private markets manager.
The massive transaction values approximately US$4.3 billion, representing an enterprise value-to-EBITDA multiple of approximately 10x.
IFF’s Food Ingredients business is a globally recognized leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients serving multinational food and beverage customers.
In 2025, the Food Ingredients business generated nearly US$3.1 billion in annual sales and approximately US$430 million of EBITDA.
As part of the transaction, IFF has chosen to retain an approximately 10% minority equity interest in the business, valued at approximately US$200 million, permitting continued collaboration and cooperation between IFF and Food Ingredients, while allowing IFF and its shareholders to participate in future value creation under the new ownership.
The sale is part of a broader portfolio transformation strategy that has seen IFF divest 13 non-core businesses in recent years, generating nearly US$10 billion in gross proceeds.
Divestitures have included its fruit preparation business to Frulact in May 2021; its savory solutions group to PAI Partners in December 2022; its Flavor Specialty Ingredients (FSI) business to Exponent in February 2023; its Pharma Solutions business unit to Roquette in March 2024; and its lecithin, soy protein concentrate and crush businesses to Bunge in August 2025.
Management has increasingly focused the company around three core segments: Taste, Scent, and Health & Biosciences.
Although IFF’s food ingredients unit is its largest by revenue, generating roughly 30% of the business as of December 31, 2025, its margins lagged behind the rest of the portfolio.
The division’s sales declined by 3% in 2025 to US$3.28 billion, partly due to slow demand in protein ingredients and the company’s decision to cut lower-margin products.
IFF’s CEO Erik Fyrwald expressed confidence in the deal’s strategic direction.
“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,” he said.
Lorne Somerville, managing partner and co-head of North American private equity at CVC, welcomed the development, saying 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 specialty ingredients.
The transaction is expected to close by the end of the second quarter of 2027, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals, where required.
As part of the retained 10% equity interest, IFF will also hold a board seat in the new company.
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