International Flavors & Fragrances agreed on 29 May to sell its Food Ingredients business to funds advised by CVC Capital Partners in a transaction that values the unit at about $4.3bn.
Why CVC Capital Partners is buying IFF Food Ingredients business
IFF said the sale advances its portfolio overhaul and leaves it centred on Taste, Scent and Health & Biosciences, with better cash flow and more financial flexibility. CVC said the business has strong positions in a resilient sector helped by rising global food consumption and demand for clean-label products.
“We are delighted to welcome IFF's Food Ingredients business to CVC's U.S. portfolio.”
Deal terms and financing
The price represents about 10 times EBITDA. IFF is retaining roughly 10% of the business, worth about $200m, and will hold a board seat. It expects net cash proceeds of about $3.8bn after the rolled-over equity, adjustments, separation costs and taxes, and plans to use them mainly to cut debt and buy back shares.
Regulatory approvals and timing
Closing is expected by the end of the second quarter of 2027, subject to information and consultation requirements and regulatory approvals.
Market context
The Food Ingredients unit makes texturants, emulsifiers, plant-based solutions and other specialty ingredients for multinational food and beverage groups. Including this deal, IFF said it has divested 13 non-core businesses for nearly $10bn in gross proceeds.
