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International Flavors & Fragrances IFF.N has agreed to sell its food ingredients business to CVC Capital Partners in a deal that values the unit at about $4.3 billion, as the flavor maker shrinks its portfolio to improve profitability.
IFF is looking to focus more on its fragrance and health businesses as consumer spending in these areas remains strong.
The company said it had divested 13 non-core businesses in recent years and raised about $10 billion in gross revenue to reinvest in its higher-margin businesses.
The company’s stock rose about 2% in pre-market trading Friday.
IFF has a market capitalization of approximately $19.9 billion, according to LSEG data.
The company sold its pharmaceutical solutions business to French plant-based ingredient maker Roquette last year in a deal valued at $2.85 billion. It also sold its soy protein concentrate business to food company Bunge BN.N earlier this year.
IFF said it expects to receive approximately $3.8 billion upon closing from the sale of its food ingredients business, and that it will use the net proceeds from the sale to reduce debt, repurchase shares and reinvest in its core portfolio.
This business, which makes emulsifiers, sweeteners and pastes, was IFF’s largest in terms of revenue as of December 31, 2025, according to its annual report.
Food and beverage companies, some of IFF’s largest clients, are also streamlining their operations to adapt to changing trends as consumers shift to cheaper products or opt for healthier alternatives. The increasing adoption of appetite suppressant weight loss drugs is also changing eating habits.
The maker of Frank’s RedHot sauce, McCormick MKC.N, agreed in April to merge with the ULVR.L food division of Unilever, owner of Hellmann’s mayonnaise. A few days later, Unilever announced its intention to acquire the American dietary supplement brand Grüns in order to focus more on wellness and beauty products.
It was the Wall Street Journal which was the first to report the agreement with IFF, the finalization of which is scheduled for the end of the second quarter of 2027.
