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IFF Enters Into Agreement to Sell Its Food Ingredients Business to CVC

IFF
  • IFF agreed to sell its Food Ingredients business to funds advised by CVC Capital Partners for approximately $4.3 billion in enterprise value.
  • The transaction values the business at roughly 10x EBITDA & IFF will retain a 10% minority equity stake worth about $200 million.
  • Food Ingredients generated nearly $3.1 billion in sales & approximately $430 million in EBITDA in 2025.
  • The deal sharpens IFF's focus on its three core innovation-driven businesses: Taste, Scent, & Health & Biosciences.
  • IFF expects net cash proceeds of approximately $3.8 billion at closing to be used for debt reduction, share repurchases, & reinvestment.
  • The transaction is expected to be dilutive to adjusted EPS in the first 12 months post-closing.
  • IFF reiterated its full-year 2026 guidance: sales of $10.5 billion to $10.8 billion & adjusted operating EBITDA of $2.05 billion to $2.15 billion.
  • The deal is expected to close by the end of Q2 2027, subject to regulatory approvals & customary conditions.
  • IFF will hold a board seat in the new company as part of its retained equity interest.
  • This divestiture marks the 13th non-core business sold by IFF, generating nearly $10 billion in gross proceeds over recent years.