USD 2.9 billion: CVC acquires IFF’s food ingredients business

Originally published by 'China Private Equity Investment' (ID: PE-China) Author: Wei Yajun Photography: Bob IFF retains a 10% equity stake; CVC holds the remaining 90% through one of its funds. Recently, International Flavors & Fragrances Inc. (IFF) announced it has signed a definitive agreement to sell its entire food ingredients business to a fund managed by global private equity giant CVC Capital Partners. The transaction values the business at USD 4.3 billion (over RMB 29 billion). IFF retains a ~10% minority stake in the business; CVC’s fund acquires a 90% equity stake in the food ingredients business. Under the agreement, IFF will retain approximately 10% of the equity in the business; CVC’s fund will acquire the remaining 90%. Upon closing, IFF will hold a dedicated board seat on the newly established independent operating entity for the business and will continue participating in major operational decisions. This equity linkage is intended to sustain long-term supply-chain integration and technological collaboration between the parties, ensuring a smooth transition for customers who purchase both flavor/fragrance products and food ingredients from IFF. The core asset of this transaction comprises IFF’s entire global food ingredients business—including all associated manufacturing facilities, R&D laboratories, customer contracts, patented technologies, supply-chain infrastructure, and the full operations team. In its statement, CVC expressed strong confidence in the long-term growth potential of plant-based foods and clean-label ingredients globally. It views IFF’s food ingredients business—with its comprehensive global production capacity and robust technology pipeline—as a core platform for CVC’s strategic consolidation in the food-ingredients sector. CVC plans to significantly increase R&D investment and pursue targeted acquisitions in niche sub-sectors to further expand market share. This deal is reportedly among the largest mergers and acquisitions in the global food-ingredients industry in 2026. Closing is expected by the end of Q2 2027. CVC Capital Partners was founded in 1981 and is headquartered in Luxembourg. It is a global private equity firm originally spun off from Citigroup’s venture capital division. As of now, it manages assets totaling EUR 200 billion.

Revenue of RMB 40 billion in first half-year; flavor & fragrance giant IFF ‘holds steady’

Recently, International Flavors & Fragrances Inc. (IFF) released its financial results for the second quarter of fiscal year 2025 and key consolidated financial data for the first half of the year. From a financial-performance perspective: 1. Revenue Total revenue for the first six months of FY2025 amounted to USD 5.607 billion (approximately RMB 40.008 billion), down 3.13% year-on-year from USD 5.788 billion in the same period last year. Second-quarter sales reached USD 2.764 billion (approximately RMB 19.722 billion), a 4% decline year-on-year—though sales growth rose 3% on a currency-neutral basis. 2. Profitability For the first six months of FY2025, IFF reported a net loss of USD 405 million, compared to net income of USD 233 million in the same period last year. Pre-tax profit for the second quarter stood at USD 534 million; adjusted EBITDA totaled USD 552 million (approximately RMB 3.939 billion), representing a 6% increase on a currency-neutral basis. The losses may stem from expenses related to business divestitures, rising operating costs, or underperformance in certain business segments. International Flavors & Fragrances Inc. (IFF) is a global leader in flavors, fragrances, and functional ingredients, delivering sensory experiences and nutrition-and-health solutions to industries including food & beverage, personal care, home care, and pharmaceuticals. In 1889, Josef Polak and Leopold Schwarz co-founded Pollak & Schwarz in the Netherlands—a company producing fruit flavors and essential oils—which soon became Europe’s leading flavor producer at the time. In the early years of WWII, it merged with U.S.-based Van Ameringen-Haebler, Inc., a firm specializing in perfumery. In 1958, the two entities completed a full global merger, forming International Flavors & Fragrances (IFF). By business segment: ① Taste Segment Second-quarter revenue reached USD 631 million, with broad-based growth across all regions. Adjusted EBITDA stood at USD 125 million; the second-quarter adjusted operating EBITDA margin was 19.8%. On a comparable, currency-neutral basis, operating EBITDA increased by 3%.

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