IFF to divest food ingredients business

IFF enters into an agreement to sell its food ingredients business to funds advised by CVC Capital Partners, a global private markets manager, in a transaction that values the business at approx. US$4.3 billion. As part of the transaction, IFF has chosen to retain an approx. 10 per cent minority equity interest in the business, permitting continued collaboration and co-operation between IFF and the food ingredients business.

The transaction marks a significant step in IFF’s portfolio transformation and is expected to strengthen the company’s focus on taste, scent, and health & biosciences businesses.

“This transaction represents an important strategic milestone in our ongoing portfolio optimization initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments,” said Erik Fyrwald, CEO of IFF. “By simplifying our portfolio to where we can create the greatest value, IFF will accelerate innovation, drive investment in R&D, and further integrate our biotechnology and naturals capabilities more effectively across our global platform. Importantly, by retaining a minority stake in food ingredients, we will continue to participate in the future upside of a strong business under dedicated ownership. This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.”

IFF’s food ingredients business is a globally recognized leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients serving multinational food and beverage customers. In 2025, the business generated nearly US$3.1 billion in annual sales.

Over the last several years, IFF has taken action to simplify its portfolio. Including this transaction, IFF has divested 13 non-core businesses.

IFF expects to receive net cash proceeds of approx. US$3.8 billion at closing. The company intends to prioritize use of proceeds toward debt reduction, targeted share repurchases, and reinvestment in high-return growth and high-return opportunities across the core portfolio.

The transaction is expected to close by the end of the second quarter of 2027. As part of the retained 10 per cent equity interest, IFF will also hold a board seat in the new company.