IFF is selling its food ingredients business to funds advised by CVC in a deal that values the unit at about $4.3 billion, or roughly 10 times EBITDA.
The company said it will keep about a 10% stake in the business, worth roughly $200 million, and expects to receive about $3.8 billion in net cash proceeds at closing. IFF said it plans to use the money for debt reduction, share repurchases and reinvestment in its core businesses.
The food ingredients unit generated nearly $3.1 billion in sales in 2025 and about $430 million in EBITDA. The sale comes after IFF said it has divested 13 non-core businesses over the past several years, producing nearly $10 billion in gross proceeds.
IFF said the transaction is expected to close by the end of the second quarter of 2027. It also reiterated full-year 2026 guidance for sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA of $2.05 billion to $2.15 billion. The company said comparable currency-neutral sales growth is expected to be 1% to 4%, while comparable currency-neutral adjusted operating EBITDA growth is expected to be 3% to 8%.
After the sale, IFF said it will focus on three businesses: taste, scent, and health & biosciences. It said the streamlined portfolio is expected over time to support mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth. As a result of these announcements, the company's shares have moved -2.5% on the market, and are now trading at a price of $74.15. For more information, read the company's full 8-K submission here.
