International Flavors & Fragrances (IFF) has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners in a deal valuing the division at approximately $4.3bn.
The divested unit is a major supplier of texturants, emulsifiers, plant-based solutions and other speciality food ingredients to multinational food and beverage manufacturers.
In 2025, the business generated nearly $3.1bn in annual sales and approximately $430m of EBITDA.
IFF will retain a 10% minority equity stake, worth approximately $200m, allowing it to maintain a collaborative relationship with the business and participate in future value creation under CVC's ownership.
The company will also hold a seat on the board of the newly independent entity.
The transaction is the latest move in an extensive portfolio restructuring programme.
The sale is part of a broader portfolio transformation strategy that has seen IFF divest 13 non-core businesses in recent years, generating nearly $10bn in gross proceeds.
Proceeds from this deal (net cash of approximately $3.8bn) are expected to be directed towards debt reduction, targeted share repurchases and reinvestment in core operations.
Going forward, IFF has said it will focus on three business segments: Taste, Scent and Health & Biosciences.
The company is targeting mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth in the long term.
For CVC, the acquisition offers a large-scale platform in a sector showing resilience and rapid growth.
Global food consumption growth, increasing demand for clean-label formulations and continued adoption of plant-based and specialty ingredients are expected to support future expansion opportunities.
The transaction is expected to close by the end of Q2 2027, subject to regulatory approvals and customary closing conditions.