CVC is finalizing a $4 billion acquisition of International Flavors & Fragrances' food ingredients division, positioning the deal as one of 2026's most significant corporate carve-outs. The transaction follows a strategic review launched by IFF last summer for a business that supplies ingredients to ice creams, snacks, and manufactured foods.

The New York-listed seller saw the unit's net sales decline 4% year-on-year in Q4 2025 amid weaker demand for plant-based proteins. However, the division recovered in Q1 2026 with net sales rising 3% from the prior-year period, a rebound that likely strengthened valuation expectations during the auction's final stages.

For CVC, the deal marks a substantial US transaction following the private equity firm's North American leadership overhaul in 2025, which was prompted by difficulties on several regional deals. The acquisition follows similar carve-out transactions, including Advent International's $4.8bn Reckitt buyout and Clayton, Dubilier & Rice's €15.5bn Sanofi consumer medications deal.