USD 4.3 billion! Why is IFF selling its food ingredients business?

IFF, a global leader in flavors and fragrances, has divested its largest food ingredients business. I. IFF Has Sold Its Food Ingredients Business On May 29, 2026, IFF—the global flavors and fragrances giant—announced it had reached an agreement to sell its food ingredients business to CVC Capital Partners (hereinafter “CVC”), a private market investment firm, for approximately USD 4.3 billion. According to IFF, as part of the transaction, it will retain a minority stake of approximately 10%. As early as February 2026, industry media Food Navigator reported that IFF intended to divest its food ingredients division. At the time, IFF’s CEO Erik Fyrwald stated that the company had achieved its full-year 2025 financial targets and was taking steps to reallocate resources toward its “highest-value businesses.” [1] Following the recent announcement of the deal, Erik Fyrwald reiterated that this transaction enables IFF to further concentrate resources on high-growth, high-margin niche markets. [2] The implication is clear: the food ingredients business no longer delivers sufficient profitability or growth momentum for IFF today. This is evident from IFF’s 2025 financial report. In 2025, IFF’s food ingredients business generated net sales of USD 3.278 billion—its highest among IFF’s five major business units. Yet behind this large scale lies stagnant growth. While sales across all other major divisions rose year-on-year in 2025, the food ingredients business declined by 3%. Moreover, its adjusted segment EBITDA margin stood at only 12.9%, the lowest among all divisions. [3] II. Why Is IFF Voluntarily “Slimming Down”? According to IFF’s official website, its food ingredients business comprises nine segments—including emulsifiers, sweeteners, and protein solutions—and focuses on foundational technical support for food and beverage formulation, helping brands improve product texture, stability, and more. For example, IFF states on its website that its emulsifiers, when applied in baked goods, can control batter viscosity to ensure smoother flow. Much of IFF’s capability in the food ingredients domain stems from assets and technological expertise acquired through its 2021 merger with DuPont Nutrition & Biosciences. At the time, IFF clearly aimed to become a comprehensive powerhouse in the ingredients industry via the merger. Andreas Fibig, then-CEO of IFF, stated that the merger would “deliver best-in-class ingredients and solutions to end-market customers across industries,” and emphasized that the complementary portfolios would position the combined company as a leader across categories including taste, texture, aroma, nutrition, enzymes, cultures, and more. [4] Yet looking back at IFF’s history, research into scents and flavors has always been the company’s origin. One of IFF’s predecessor companies, Pollak & Schwartz, was a U.S.-based enterprise specializing in fruit flavors and essential oils. In 1958, Pollak & Schwartz merged with van Ameringen-Haebler—a U.S. company—to form IFF.

CNY 29 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 90% via its fund. Recently, International Flavors & Fragrances Inc. (IFF) announced it has signed a definitive agreement to sell its entire food ingredients business unit 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% equity stake. • CVC acquires a 90% equity stake via its fund. Under the agreement, IFF will retain a minority stake of approximately 10% in the business; CVC’s fund will acquire the remaining 90%. Upon closing, IFF will hold one dedicated board seat on the newly established independent operating entity and continue participating in major operational decisions. This equity linkage ensures long-term supply-chain and technological collaboration between the two parties and guarantees a smooth transition for existing cross-selling customers—those served jointly by IFF’s flavors business and its former food ingredients business. The core asset of this transaction comprises IFF’s entire food ingredients business unit, including all associated manufacturing facilities, R&D laboratories, customer contracts, patented technologies, supply chain infrastructure, and the full operations team worldwide. 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 reserves—as a core integration platform within CVC’s food-ingredients investment strategy. CVC plans to significantly increase R&D investment and pursue targeted M&A in specialized sub-segments to further expand market share. Reportedly, this is one of the largest mergers and acquisitions in the global food-ingredients industry in 2026. The transaction is expected to close by the end of Q2 2027. CVC Capital Partners (“CVC”) was founded in 1981 and is headquartered in Luxembourg. A global private equity investment firm, CVC originated as the venture capital division of Citigroup. It currently manages assets totaling EUR 200 billion.

Total Non-Current Assets of International Flavors & Fragrances Inc. (FWB:IFF)

3 days ago

This report presents the total non-current assets for International Flavors & Fragrances Inc., utilizing data from the TradingView financial analysis platform.

TradingView

2026-04-07

BNP Paribas Exane Lowers Price Target for International Flavors & Fragrances (NYSE:IFF)

2026-04-07

International Flavors & Fragrances Inc. Stock Underperforms on Tuesday

2026-04-08

International Flavors & Fragrances Inc. Given Consensus Recommendation of "Moderate Buy" by Analysts

2026-04-09

OFI Invest Asset Management Reduces Stake in International Flavors & Fragrances

2026-04-10

Douglas Lane & Associates LLC Sells 39,607 Shares of International Flavors & Fragrances Inc.