International Flavors & Fragrances Inc. IFF announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses.
IFF’s Benefits From the Deal
The Food Ingredients business generated $3.1 billion in 2025 with $430 million of EBITDA. The deal values the business at $4.3 billion, which represents an enterprise value of about 10X its EBITDA. International Flavors has decided to retain around 10% minority equity interest in the business to allow its shareholders to participate in future value creation under its new ownership.
At closing, International Flavors will receive net cash proceeds of $3.8 billion. The company aims to use the cash proceeds for debt reduction, targeted share repurchases, and reinvestment in high-return growth and high-return opportunities across the core portfolio.
IFF expects the deal to close by the end of the second quarter of 2027, subject to closing conditions.
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