IFF Agrees USD4.3 Billion Sale Of Food Ingredients Business To CVC

International Flavors & Fragrances (IFF) has entered into an agreement to sell its Food Ingredients business to private equity firm CVC in a transaction valuing the business at approximately USD 4.3 billion.

The divestment marks a significant step in IFF’s ongoing strategy to streamline its portfolio and strengthen its balance sheet. Under the terms of the agreement, IFF will receive around USD 3.8 billion in net cash proceeds while retaining an approximately 10% ownership stake in the business.

The Food Ingredients division generated approximately USD 3.1 billion in revenue and around USD 430 million in adjusted EBITDA in 2025. The business serves customers across a range of food categories, supplying ingredient solutions used in products such as dairy, beverages, bakery, confectionery and savoury foods.

IFF said the transaction follows a strategic review launched in 2025 aimed at enhancing shareholder value and sharpening the company’s focus on its core operations.

“The sale of our Food Ingredients business is another significant milestone in our journey to transform IFF into a more focused company,” said Erik Fyrwald, Chief Executive Officer of IFF. “This transaction enables us to further strengthen our balance sheet and focus on our core portfolio while maintaining the opportunity to participate in the future growth of the Food Ingredients business through our retained minority stake.”

The company stated that the Food Ingredients business has established strong positions in multiple ingredient categories and has delivered consistent financial performance. Following the transaction, the business will operate independently under CVC ownership.

IFF intends to use the proceeds primarily to reduce debt and improve financial flexibility. The company said the move supports its broader strategy of focusing resources on areas where it believes it can generate the strongest long-term growth and innovation opportunities.

The transaction is subject to customary regulatory approvals and closing conditions. Both parties expect the deal to close during the second half of 2026.

Following completion of the sale, IFF will continue to operate its remaining businesses, including Health & Biosciences, Scent, Pharma Solutions and Taste operations that remain outside the divested Food Ingredients portfolio.

The agreement represents one of the largest transactions in the global ingredients sector this year and reflects continued investor interest in food ingredient businesses with established customer bases, technical capabilities and exposure to long-term consumer trends.