IFF divests food ingredients business to CVC Capital Partners

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IFF divests food ingredients business to CVC Capital Partners

29 May 2026

Annie Hollon

Annie Hollon is a journalist, copywriter and social media strategist from the Dallas, Texas area. She found a love for magazine writing during her time at the University of Alabama where she graduated with a Bachelor of Arts, double majoring in public relations and English. Beyond writing, you can find her expanding her library, attempting to teach herself the guitar and trying new hobbies.

NEW YORK — IFF, a global producer of flavors, food ingredients and other products, has agreed to sell its Food Ingredients business to private markets firm CVC Capital Partners. The deal is expected to close in the second quarter of 2027.

The deal values the business at $4.3 billion, or about 10 times EBITDA. IFF will retain a roughly 10% minority stake, valued at about $200 million, allowing it to continue collaborating with the business, participate in future value creation, and hold a board seat at the new company.

“We are delighted to welcome IFF’s Food Ingredients business to CVC’s US portfolio,” said 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. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth.”

IFF CEO Erik Fyrwald said the transaction advances the company’s strategy to streamline its portfolio and focus on higher-growth, higher-margin segments: Taste, Scent, and Health & Biosciences.

“This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.” — Erik Fyrwald | CEO | 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,” Fyrwald said. “Importantly, by retaining a minority stake in Food Ingredients, we will continue participating 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.”

The Food Ingredients business provides a range of solutions for multi-national food and beverage customers, including texturants, emulsifiers, plant-based offerings and other specialty ingredients. In 2025, the segment generated nearly $3.1 billion in annual sales and about $430 million in EBITDA.

“We are proud of the strong market positions, customer relationships and talented team that have made Food Ingredients a strong business,” Fyrwald continued. “We are confident CVC is the right owner for its next chapter and that this transaction creates significant value for IFF shareholders while giving Food Ingredients an excellent platform for future success.”

At closing, IFF is expected to receive net cash proceeds of about $3.8 billion, which the company intends to use for debt reduction to accelerate deleveraging and reinforce balance sheet strength, targeted share repurchases previously authorized by its board of directors, and for reinvestment to support its core portfolio.