Description

IFF’s $4.3 Billion Buyout Deal: The Hidden Value In Its Food Ingredients Exit!

International Flavors & Fragrances has moved forward with one of the most important steps in its portfolio simplification plan by agreeing to sell its Food Ingredients business to funds advised by CVC Capital Partners in a transaction valuing the unit at about $4.3 billion. The business, which supplies texturants, emulsifiers, plant-based solutions, and specialty food ingredients, generated nearly $3.1 billion in 2025 sales and roughly $430 million in EBITDA, implying a deal valuation of approximately 10x enterprise value-to-EBITDA. IFF will retain around a 10% minority equity stake worth about $200 million and keep a board seat in the new company. The company expects about $3.8 billion in net cash proceeds, mainly for debt reduction, share repurchases, and reinvestment in core growth areas. The transaction is expected to close by the end of Q2 2027, subject to regulatory approvals and customary closing conditions.