IFF To Sell Food Ingredients Business

IFF entered into an agreement to sell its food ingredients business to funds advised by CVC Capital Partners in a transaction that values the business at approximately $4.3 billion. IFF is retaining an approximately 10% minority equity interest in the business—a move that will allow for continued collaboration between IFF and food ingredients and allow IFF and its shareholders to participate in future value creation under its new ownership.

The transaction marks a significant step in IFF’s decision to focus on taste, scent and health and biosciences.

“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,” said 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.”

According to Fyrwald, retaining a minority stake in food ingredients, IFF will continue to “participate in the future upside of a strong business under dedicated ownership,” he said.

In 2025, IFF’s food ingredients business that will be divested generated nearly $3.1 billion in annual sales and approximately $430 million of EBITDA.

Over the last several years, IFF has divested 13 non-core businesses, which it says has generated nearly $10 billion in gross proceeds.