IFF has agreed to sell its food ingredients business to private equity firm CVC in a deal valued at $3.8 billion. The transaction will see IFF retain a 10% minority stake worth approximately $200 million in the divested unit. This strategic move represents a significant shift in IFF's business portfolio as the company focuses on its core flavor and fragrance operations.

Based in New York City, IFF supplies flavors, ingredients, and scents for consumer goods across various industries. The food ingredients division being divested generated nearly $3.1 billion in revenue in 2025, highlighting its substantial contribution to IFF's overall business. This sale aligns with IFF's strategy to streamline operations and concentrate on higher-margin specialty segments.

The $3.8 billion net proceeds will provide IFF with significant financial flexibility to invest in growth areas. For CVC, acquiring a profitable food ingredients business with established market presence represents a strong entry into the food additives sector. The deal underscores the ongoing consolidation trend in the food ingredients industry.