IFF to sell Food Ingredients business to CVC
- IFF agreed to sell its Food Ingredients business to CVC for an enterprise value of ~$4.3B (≈10x EBITDA), retaining ~10% equity (~$200M) and a board seat.
- The divested unit generated ≈$3.1B in sales and ≈$430M EBITDA in 2025, and IFF expects net cash proceeds of ≈$3.8B at closing.
- Transaction expected to close by end of Q2 2027; proceeds will prioritize debt reduction, authorized share repurchases and reinvestment, and the Food Ingredients portfolio includes texturants, emulsifiers, plant‑based solutions and other specialty ingredients while IFF refocuses on Taste, Scent and Health & Biosciences (probiotics, enzymes, cultures, bioactives).
Deal overview
IFF agreed to sell its Food Ingredients business to funds advised by CVC Capital Partners for an enterprise value of approximately $4.3 billion (≈10x 2025 EBITDA); IFF will retain about 10% equity (~$200M) and a board seat.
Business and financials
The divested unit reported roughly $3.1 billion in sales and $430 million of EBITDA in 2025; product lines include texturants, emulsifiers, plant‑based solutions and specialty ingredients serving global food and beverage customers.
Use of proceeds and financial impact
IFF expects net cash proceeds of about $3.8 billion at closing, to prioritize debt reduction, board‑authorized share repurchases and reinvestment in core, higher‑return businesses; the sale is expected to be dilutive to adjusted EPS in the first 12 months before capital deployment and stranded‑cost actions.
Timing, governance and advisors
The transaction is expected to close by the end of Q2 2027, subject to customary conditions and regulatory approvals; J.P. Morgan Securities (lead) and BofA Securities are financial advisors and Skadden is legal advisor.
Outlook and risks
Post‑close, IFF will focus on Taste, Scent and Health & Biosciences and reiterates full‑year 2026 guidance ranges; completion remains subject to customary closing conditions and material business and market risks noted by the company.
Source: IFF
