IFF Divests Food Ingredients for US$4.3B to CVC, Reshaping Industry Supply

London, United Kingdom — 29 May 2026

International Flavors & Fragrances (IFF) has finalised an agreement to divest its Food Ingredients business to CVC Capital Partners for approximately US$4.3 billion. IFF will retain a 10% minority equity interest, valued at roughly US$200 million, in the newly acquired entity. This transaction, representing an enterprise value-to-EBITDA multiple of around 10x, strategically realigns IFF's focus towards higher-growth, higher-margin segments, including flavours, fragrances, and health & biosciences. This divestiture follows a reported net loss of US$374 million for IFF in 2025, largely attributed to a US$1.15 billion write-down on the Food Ingredients business itself, as reported by Food Ingredients First.

The move is a clear signal of global flavour and ingredient companies optimising their portfolios for enhanced efficiency and shareholder returns. IFF expects to secure approximately US$3.8 billion in net cash proceeds upon closing, bolstering its balance sheet and providing capital for targeted investments or acquisitions in its core domains. The divested Food Ingredients segment, a significant supplier of texturants, emulsifiers, and plant-based solutions, generated nearly US$3.1 billion in annual revenue and approximately US$430 million in EBITDA in 2025. Its transition to CVC Capital Partners introduces a private equity perspective to a crucial supply chain segment, with CVC noting the business's strong position in a resilient sector driven by increasing global food consumption and demand for clean label products.

CVC Capital Partners' acquisition underscores a growing private equity interest in stable, innovation-driven sectors of the food industry. According to Lorne Somerville, managing partner at CVC, the Food Ingredients business offers significant growth opportunities, leveraging its global reach and technical capabilities. Dr. Thomas Schneider, managing director at CVC, highlighted the potential to provide tailored customer solutions across food production categories, anticipating enhanced value creation through CVC's operational expertise. This partnership aims to support the continued development of the Food Ingredients business, marking a substantial private equity involvement in mature, high-margin food markets.

What this means for United Kingdom

UK supplement manufacturers reliant on IFF’s Food Ingredients portfolio (e.g., texturants, emulsifiers for gummies or plant-based proteins) should expect potential changes in supplier relationship management, commercial terms, and pricing from the new CVC-owned entity. Reformulation windows could open as CVC optimises the ingredient portfolio for profitability. Brand owners must proactively engage with suppliers from the divested business by Q4 2026 to ensure supply continuity and stability, especially for ingredients impacting compliance with novel food regulations. Competitively, this could spur innovation in alternative, clean-label ingredient sourcing within the UK, providing opportunities for agile domestic suppliers.

Many leading brands in this category are manufactured in partnership with Supplement Factory.