IFF plans to sell its food ingredients business to a private equity firm in a deal worth about $4.3 billion, company officials announced Friday.
The flavors and fragrances producer said that it would retain a 10% “minority equity interest” in the division following its sale to funds advised by CVC Capital Partners, which would enable “continued collaboration and cooperation” with the business and allow the company to “participate in future value creation under its new ownership.”
IFF officials said the move would improve its cash flow and provide additional financial flexibility while strengthening its focus on “innovation-driven” segments, including fragrances, flavors and “bioactive health ingredients.”
“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,” IFF CEO Erik Fyrwald said in a statement.
The food ingredients division generated nearly $3.1 billion in sales and some $430 million in EBITDA in 2025. The deal is expected to close by the end of June.
“We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. portfolio,” added Lorne Somerville, managing partner and co-head of North American private equity at CVC. “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.”
