IFF Signs Agreement to Sell Its Food Ingredients Business to CVC

IFF (NYSE: IFF), a global leader in flavours, fragrances, food ingredients, and health and biosciences, announced today that it has reached an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners, a leading global private markets manager, in a transaction valued at approximately $4.3 billion, representing a 10x enterprise value-to-EBITDA multiple. As part of the transaction, IFF has chosen to retain an approximately 10% minority equity interest in the business, or approximately $200 million, allowing for continued collaboration and cooperation between IFF and Food Ingredients, as well as participation in future value creation under new ownership.

The purchase is a significant step forward in IFF's portfolio change, and it is intended to improve the company's emphasis on its innovative businesses, Taste, Scent, and Health & Biosciences. Following the deal, IFF will be a more focused firm with enhanced cash flow characteristics, greater financial flexibility, and a better position to meet its growth and profitability targets.

"This transaction represents an important strategic milestone in our ongoing portfolio optimisation initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments," Erik Fyrwald, CEO of IFF. "By focusing our portfolio on where we can add the most value, IFF will accelerate innovation, increase R&D investment, and better integrate our biotechnology and naturals expertise across our worldwide platform. Importantly, by retaining a minority stake in Food Ingredients, we will continue to benefit from the future growth of a great firm with dedicated ownership. This deal adds significant value to shareholders while positioning IFF to promote long-term, profitable growth.

IFF's Food Ingredients division is a global leader in texturants, emulsifiers, plant-based solutions, and speciality ingredients for multinational food and beverage companies. In 2025, the Food Ingredients company that will be disposed generated roughly $3.1 billion in yearly sales and $430 million in EBITDA.

"We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business," Fyrwald said. "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."

"We are delighted to welcome IFF's Food Ingredients business to CVC's U.S. portfolio," said Lorne Somerville, CVC's managing partner and co-head of North American private equity. "The company has established a solid position in an appealing, robust market characterised by long-term growth trends such as rising global food consumption and demand for clean-label products. Its global network and patented technical skills give it a clear competitive edge, and we anticipate significant opportunities for future expansion.

James Christopoulos, a CVC partner, noted, "The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth." We look forward to working with the team and IFF as co-shareholders to drive the next phase of growth through scalability and commercial expansion."

"Leveraging the broad technology portfolio of IFF Food Ingredients with strong application-focused development capabilities is incredibly exciting for us and will enable the business to provide customers around the globe with differentiating solutions tailored to their needs across all categories of today's food production." said Dr. Thomas Schneider, CVC Managing Director.

Source: CVC