THE WHAT? IFF has agreed to sell its Food Ingredients business to funds advised by CVC Capital Partners in a transaction valued at approximately US$4.3 billion as part of its ongoing portfolio transformation strategy.
THE DETAILS The deal values the Food Ingredients business at around 10 times EBITDA and includes IFF retaining an approximately 10% minority stake, worth around US$200 million. The divested unit generated nearly US$3.1 billion in sales and approximately US$430 million in EBITDA in 2025 and supplies specialty ingredients including texturants, emulsifiers and plant-based solutions to food and beverage manufacturers. Following the sale, IFF will focus on its Taste, Scent, and Health & Biosciences divisions. The company expects to receive approximately US$3.8 billion in net proceeds, which will be used to reduce debt, support share repurchases and fund investments in higher-growth areas. The transaction is expected to close by the second quarter of 2027, subject to regulatory approvals and customary closing conditions.
THE WHY? The divestment supports IFF’s strategy to streamline its portfolio, improve financial flexibility and concentrate resources on higher-growth, higher-margin businesses, including fragrance, flavours, health and biotechnology solutions.
Source: IFF
