IFF has agreed to sell its food ingredients division to private equity firm CVC for US$4.3bn.
The deal is part of IFF’s efforts to transform its portfolio and will leave it focused on its “innovation driven” units, which include taste, scent, and health and biosciences.
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The global flavours and fragrance business will retain a minority 10% stake in the food ingredients business.
“This transaction represents an important strategic milestone in our ongoing portfolio optimisation 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 business produces texturants, emulsifiers, plant-based solutions, and other specialty ingredients for multinational food and beverage companies, and generated nearly $3.1bn in annual sales in 2025.
The supplier’s remaining taste business focuses on technology-enabled flavour solutions for global food and beverage companies.
IFF’s scent division produces fine fragrance and consumer fragrance across personal and home care categories, as well as fragrance ingredients.
Meanwhile, IFF’s health and biosciences brings innovation-led solutions spanning probiotics, enzymes, cultures and bioactive health ingredients to market.
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