Breaking news: IFF to sell Food Ingredients business to CVC in US$4.3B strategic move

International Flavors & Fragrances (IFF) has today announced a definitive agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners for approximately US$4.3 billion, representing an enterprise value-to-EBITDA multiple of around 10x. 

The transaction highlights IFF’s ongoing portfolio transformation, designed to sharpen its focus on higher-growth, higher-margin areas, while providing capital flexibility and enhanced shareholder value.

Under the terms of the deal, IFF will retain a 10% minority equity stake in the Food Ingredients business, valued at roughly US$200 million. This stake ensures that IFF remains strategically connected to the business it has built over decades, enabling ongoing collaboration on innovation, customer solutions, and supply chain synergies.

“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,” says 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.”

Strategic focus and portfolio transformation

The divestiture supports IFF’s strategic focus on higher-growth, higher-margin segments, including flavors, fragrances, and health & biosciences. By narrowing its portfolio, IFF can direct capital and operational resources toward areas with stronger growth potential and innovation opportunities.

TIFF retains a 10% stake in its Food Ingredients business, ensuring continued collaboration while unlocking US$4.3B in capital.his transaction also strengthens IFF’s balance sheet, enhancing financial flexibility and positioning the company to pursue additional strategic investments or potential acquisitions in its core segments. The move aligns with industry trends of portfolio optimization, where global flavors and ingredients companies streamline operations to maximize efficiency, innovation, and shareholder value.

IFF reported a full-year net loss of US$374 million for 2025, driven largely by its US$1.15 billion write-down on the value of its Food Ingredients business — a segment the company is now set to sell. IFF expects to receive net cash proceeds of approximately US$3.8 billion at closing the Food Ingredients divestment.

The Food Ingredients segment is widely considered a worldwide leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients, catering to multinational F&B companies. In 2025, the portion of the Food Ingredients business slated for divestiture achieved nearly US$3.1 billion in annual revenue and about US$430 million in EBITDA.

CVC Capital Partners acquisition

For CVC Capital Partners, the acquisition provides access to a well-established food ingredients business with a diversified product portfolio and strong customer relationships. The investment highlights private equity interest in stable, innovation-driven sectors within the food industry, offering opportunities for growth, operational improvement, and strategic expansion.

“The business has built a strong position in an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean label products. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth,” says Lorne Somerville, managing partner and co-head of North American private equity at CVC.CVC Capital Partners’ acquisition highlights private equity’s growing interest in stable, innovation-driven food ingredients markets.

Dr. Thomas Schneider, managing director at CVC, adds: “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.”

CVC’s involvement is expected to support the continued development of the Food Ingredients business, while leveraging its operational expertise to enhance value creation. The transaction represents a clear example of private equity participation in mature, high-margin food markets.

Looking ahead

The sale of IFF’s Food Ingredients business to CVC Capital Partners is positioned as a strategic realignment that benefits all stakeholders. For IFF, it reinforces the company’s focus on innovation-driven, higher-margin sectors, while unlocking capital and improving financial flexibility.

For CVC, the acquisition represents a strong investment in a resilient, established business with growth potential.

The transaction also serves as an indicator of broader market dynamics, illustrating how global food ingredients companies are increasingly optimizing portfolios to enhance competitive positioning, operational efficiency, and shareholder returns.

As the deal progresses, it could influence similar strategic decisions across the industry, signaling continued interest in private equity partnerships and targeted divestitures within the B2B food ingredients market.