International Flavors & Fragrances (IFF) has agreed to sell its Food Ingredients unit to private equity firm CVC Capital Partners for $4.3 billion, the company announced on May 29. IFF will retain a 10% stake in the business and hold a board seat under the agreement.
The Food Ingredients unit generated nearly $3.1 billion in sales and about $430 million of EBITDA in 2025, according to IFF. The business is known for texturants, emulsifiers, plant-based solutions and other specialty ingredients sold to multinational food and beverage companies.
The transaction is expected to close by the end of the second quarter of 2027, pending regulatory approvals and customary closing conditions. IFF plans to use net cash proceeds of about $3.8 billion from the deal for debt reduction, targeted share repurchases, and reinvestment in high-return growth opportunities across its core portfolio.
Portfolio transformation
IFF called the divestiture "a significant step" in its portfolio transformation that will allow the company to focus on what CEO Erik Fyrwald described as "higher-growth, higher-margin segments." Following the sale, IFF's business will center on three units: Taste (flavor solutions), Scent (fine fragrance and fragrance ingredients), and Health & Biosciences (probiotics, enzymes, cultures and bioactive health ingredients).
The company said all three units serve strong markets and reflect "mega-trends" in health, well-being, food and sustainability.
Broader divestiture strategy
The Food Ingredients sale is part of a broader effort by IFF to simplify its portfolio over the last several years. Including the Food Ingredients transaction, IFF has divested 13 non-core businesses and generated nearly $10 billion in proceeds. Recent divestitures include its Pharma Solutions business unit to Roquette in March 2024 and its lecithin, soy protein concentrate and crush businesses to Bunge in August 2025.
CVC's rationale
Lorne Somerville, managing partner and co-head of North American private equity at CVC Capital Partners, said the Food Ingredients business operates in "an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean label products." He cited the business's global reach and proprietary technical capabilities as competitive advantages.
James Christopoulos, a partner with CVC, said the firm looks forward to partnering with the Food Ingredients management team and with IFF as co-shareholders to accelerate growth through scale and commercial expansion.