International Flavors & Fragrances is selling its food ingredients business to funds advised by CVC Capital Partners in a deal valuing the unit at about $4.3 billion, equal to roughly 10 times EBITDA.
IFF said it will keep about a 10% minority stake, worth about $200 million, and expects to receive about $3.8 billion in net cash at closing after adjustments, carve-out costs and taxes.
The food ingredients unit generated nearly $3.1 billion in annual sales in 2025 and about $430 million in EBITDA.
IFF said the transaction adds to a series of divestitures that have now reached 13 non-core businesses and nearly $10 billion in gross proceeds. The company plans to use the new cash first for debt reduction, then for share repurchases and reinvestment in higher-return businesses.
The company also reiterated its 2026 outlook. It expects full-year sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA of $2.05 billion to $2.15 billion. It still sees comparable currency-neutral sales growth of 1% to 4% and comparable currency-neutral adjusted operating EBITDA growth of 3% to 8%.
IFF said the deal is expected to close by the end of the second quarter of 2027. As a result of these announcements, the company's shares have moved -1.66% on the market, and are now trading at a price of $74.79. If you want to know more, read the company's complete 8-K report here.
