What did International Flavors & Fragrances (NYSE:IFF) announce regarding its Food Ingredients division?

International Flavors & Fragrances agreed to sell its Food Ingredients division to funds advised by CVC Capital Partners for approximately $4.3 billion. The company will retain a 10% minority stake, valued at roughly $200 million, allowing ongoing collaboration and potential upside participation.

Why is IFF (NYSE:IFF) divesting its Food Ingredients business?

The divestiture is part of a multi-year effort to streamline operations, focus on higher-margin specialty portfolios, and strengthen the balance sheet. Management aims to reduce lower-margin exposure while improving free cash flow and operational efficiency.

How large was the Food Ingredients division?

In 2025, the unit generated nearly $3.1 billion in sales and approximately $430 million in EBITDA. While a significant contributor to IFF’s historical top line, it carried lower margins compared with the company’s core specialty ingredients businesses.

What financial impact is expected from the divestiture?

The sale may temporarily dilute adjusted earnings per share during the first 12 months post-closing due to loss of revenue and associated earnings. However, long-term benefits include a more streamlined portfolio, improved free cash flow, and reduced stranded overhead costs.

What valuation metrics were applied to the Food Ingredients division?

The transaction implies an enterprise value-to-EBITDA multiple of approximately 10x. This multiple reflects both the size of the business and its lower-margin profile relative to IFF’s specialty segments.

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IFF to sell food ingredients business to CVC for $4.3 billion

Written by Heidi Cuthbert Published May. 29 2026Last Updated May. 29 2026

International Flavors & Fragrances (NYSE:IFF) agreed to sell its Food Ingredients division to funds advised by CVC Capital Partners in a transaction valuing the unit at approximately $4.3 billion.

The divestiture marks the latest step in a multi-year effort by the New York-based specialty ingredients giant to streamline operations and shore up its balance sheet.

The purchase price represents an enterprise value-to-EBITDA multiple of approximately 10 times.

Under the terms of the agreement, IFF will retain an approximate 10% minority equity interest in the business, valued at roughly $200 million.

This retention will allow the company to maintain ongoing commercial collaborations with the unit while enabling its shareholders to capture potential upside under CVC's management.

The divested unit is a major supplier of texturants, emulsifiers, and plant-based solutions to global food and beverage brands.

In 2025, the business generated nearly $3.1 billion in annual sales and approximately $430 million in EBITDA, accounting for a significant portion of IFF's historical top-line revenue but carrying lower margins than the company's core specialized portfolios.

While the sale will temporarily dilute adjusted earnings per share during the first 12 months post-closing, management stated that the long-term benefits of a streamlined portfolio and improved free cash flow generation outweigh the near-term earnings friction.

The company has already initiated an internal plan to eliminate stranded overhead costs stemming from the carve-out.

The transaction is expected to finalize by the end of the second quarter of 2027, contingent upon regulatory approvals and customary closing conditions.