IFF, a global leader in flavors, fragrances, food ingredients, and health and biosciences, has agreed to sell its Food Ingredients business to funds advised by CVC Capital Partners in a transaction valuing the unit at approximately $4.3 billion.
The company will retain an approximately 10% minority equity stake worth around $200 million, keeping a financial foothold in the business while continuing limited collaboration under new ownership.
The deal marks a major step in IFF’s ongoing portfolio reshaping, as the company pivots more sharply toward its core Taste, Scent, and Health & Biosciences segments. Management says the streamlined structure will improve cash flow, increase financial flexibility, and strengthen long-term growth and profitability prospects.
“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. Importantly, by retaining a minority stake in Food Ingredients, we will continue to participate 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.”
IFF’s Food Ingredients division is a major global supplier of texturants, emulsifiers, and plant-based solutions, serving multinational food and beverage customers. In 2025, the business generated nearly $3.1 billion in revenue and about $430 million in EBITDA.
Fyrwald emphasized the strength of the business being sold, saying, “We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business,” and adding, “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.”
CVC Capital Partners framed the acquisition as a bet on long-term structural growth in the global food system.
“We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. 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.”
James Christopoulos, partner at CVC, added: “The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth. We look forward to partnering with the team and with IFF as co-shareholders to accelerate the next phase of growth through scale and commercial expansion.”
