CVC takes majority stake in IFF FOOD INGREDIENTS

Global specialty chemicals leader International Flavors & Fragrances (IFF) has entered into a definitive agreement to divest its Food Ingredients division to private equity firm CVC Capital Partners. As part of this corporate carve-out, IFF will roll over an approximate 10% minority equity stake in the newly independent business. This transaction structure ensures continued operational collaboration and technological cooperation between the two entities while allowing the seller's shareholders to participate in future value creation under the sponsor's ownership. The deal execution was supported by an advisory syndicate featuring Citibank and the law firm White & Case. For the seller IFF, led by CEO Erik Fyrwald, this divestiture marks a major strategic milestone in its ongoing portfolio optimization initiative. The transaction enables the company to sharpen its operational focus and reallocate capital toward its higher-growth, innovation-driven core segments: Taste, Scent, and Health & Biosciences. The resulting streamlined profile will significantly improve IFF's cash flow characteristics and accelerate its strategic R&D investments. For the acquirer CVC Capital Partners, the buyout secures control of a globally recognized leader in texturants, emulsifiers, and plant-based solutions. The sponsor intends to leverage the asset's broad technology portfolio and scale to capture long-term macro growth trends, including rising global food consumption and the accelerating consumer demand for clean-label products.