IFF will sell its Food Ingredients business to CVC for $4.3 billion, retaining a minority stake and focusing on core growth areas.
IFF, a leading global provider of flavors, fragrances, food ingredients, health, and biosciences solutions, has announced a definitive agreement to sell its Food Ingredients business to investment funds advised by CVC Capital Partners, one of the world’s prominent private markets investment firms. The transaction values the Food Ingredients division at approximately $4.3 billion, reflecting an enterprise value-to-EBITDA multiple of around 10 times.
As part of the agreement, IFF will retain an approximately 10% minority equity stake in the business, representing an investment of about $200 million. This retained interest will allow the company to maintain a strategic relationship with the business after the sale while also providing an opportunity to benefit from future value creation and growth under CVC’s ownership. The minority holding is expected to support ongoing collaboration between IFF and the Food Ingredients unit in areas of mutual interest.
The divestment represents a major milestone in IFF’s broader strategy to reshape and optimize its portfolio. By exiting the Food Ingredients segment, the company aims to sharpen its focus on its core innovation-led businesses, including Taste, Scent, and Health & Biosciences. Management believes that the streamlined structure will enable IFF to operate more efficiently, improve cash flow generation, enhance financial flexibility, and strengthen its ability to pursue long-term growth opportunities.
Erik Fyrwald, Chief Executive Officer of IFF, described the transaction as a significant step in the company’s ongoing transformation efforts. He stated that the sale aligns with IFF’s objective of concentrating resources on business segments that offer stronger growth prospects and higher profit margins. According to Fyrwald, a more focused portfolio will allow the company to accelerate innovation initiatives, increase investments in research and development, and better integrate its biotechnology and natural ingredient capabilities across global operations.
He further emphasized that retaining a minority ownership stake in the Food Ingredients business ensures that IFF and its shareholders remain positioned to benefit from the future success of the operation. The transaction, he noted, delivers meaningful value to shareholders while strengthening the company’s foundation for sustainable and profitable long-term growth.
IFF’s Food Ingredients division has established itself as a leading supplier of specialty ingredients used across the global food and beverage industry. The business offers a broad portfolio that includes texturants, emulsifiers, plant-based ingredient solutions, and other specialty products that help manufacturers improve product functionality and consumer appeal. In 2025, the division generated nearly $3.1 billion in annual revenue and approximately $430 million in EBITDA, underscoring its strong market presence and financial performance.
Fyrwald acknowledged the contributions of the division’s employees and leadership team, highlighting the strong customer relationships and market positions that have enabled the business to thrive. He expressed confidence that CVC is well positioned to support the next stage of growth for the business and provide the resources necessary to expand its market opportunities.
From CVC’s perspective, the acquisition represents an attractive investment in a resilient and growing sector. Lorne Somerville, Managing Partner and Co-Head of North American Private Equity at CVC, noted that the Food Ingredients business operates in a market supported by favorable long-term trends, including rising global food consumption and increasing demand for clean-label and functional food products. He added that the business’s international footprint and technical expertise create a strong competitive advantage and provide a solid platform for future expansion.
James Christopoulos, Partner at CVC, praised the management team for building a business with substantial scale and technical capabilities. He stated that CVC looks forward to working closely with both the management team and IFF as a minority shareholder to drive the next phase of growth through commercial expansion, operational excellence, and strategic development initiatives.
