International Flavors & Fragrances Announces Sale of Food Ingredients Business to CVC

What Happened

• International Flavors & Fragrances, Inc. (IFF) announced it entered into a Purchase Agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners. The purchaser will acquire substantially all assets and assume certain liabilities related to IFF’s Food Ingredients disposal group. IFF will retain an approximately 10% minority equity interest in the business. The transaction is expected to close by the end of the second quarter of 2027, subject to customary closing conditions and any required regulatory approvals.
• IFF also noted that, together with the previously completed sale of its Soy Crush, Concentrates, and Lecithin (SCL) business on March 2, 2026, these disposals represent a strategic shift and meet U.S. GAAP criteria to be presented as discontinued operations for all periods presented.

Key Details

• Purchaser: funds advised by CVC Capital Partners.
• IFF retains ~10% minority equity interest in the Food Ingredients business.
• Expected close: by end of Q2 2027, subject to regulatory approvals and customary conditions.
• Accounting/financial reporting: Food Ingredients and the SCL disposal group are classified as discontinued operations; IFF furnished recast unaudited financial information (Exhibit 99.1) covering quarterly periods from Mar 31, 2025 through Mar 31, 2026 and the year ended Dec 31, 2025 to reflect the separations. The filing does not restate previously filed financial statements beyond these reclassifications.

Why It Matters

• For investors, the deal materially changes IFF’s business mix by divesting a major food‑ingredients portfolio while keeping a minority stake to participate in future upside.
• The classification of these businesses as discontinued operations affects how revenue and results will be reported going forward and requires investors to reference the recast financials (Exhibit 99.1) when comparing past and future results.
• The transaction remains subject to closing conditions and approvals; until closing, IFF’s financials and operational exposure to the Food Ingredients business continue to be impacted by the reclassification rather than an immediate cash proceeds recognition.