International Flavors & Fragrances Inc. (NYSE:IFF) shares are slightly down on Friday. The company is advancing its portfolio transformation with the sale of its Food Ingredients business to CVC for about $4.3 billion.
Food Ingredients business is a global supplier of texturants, emulsifiers, plant-based solutions and other specialty ingredients for major food and beverage customers. The business generated nearly $3.1 billion in sales and about $430 million in EBITDA in 2025.
• Intl Flavors & Fragrances stock is showing upward bias. Where is IFF stock headed?
Details
As part of the deal, International Flavors & Fragrances will retain an approximately 10% minority stake in the business, valued at around $200 million.
It will enable ongoing collaboration with the Food Ingredients unit and allow IFF shareholders to participate in future upside under the new ownership structure.
The transaction is expected to close by the end of the second quarter of 2027, subject to regulatory approvals.
IFF expects around $3.8 billion in net cash proceeds from the deal. The company expects to primarily use it for debt reduction, share repurchases, and reinvestment into higher-return growth opportunities.
Strategic Focus
The divestiture is part of IFF’s strategy to sharpen its focus on higher-growth and higher-margin businesses, enhancing its financial flexibility and value creation for shareholders.
The transaction is expected to sharpen its focus on core innovation-led segments, including Taste, Scent, and Health and Biosciences.
Notably, the Food Ingredients sale marks another step in IFF’s portfolio simplification strategy, bringing total divestitures to 13 non-core businesses and nearly $10 billion in gross proceeds in recent years.
Synergies & Guidance
The company expects the deal to be dilutive to adjusted EPS over the first 12 months.
Meanwhile, International Flavors & Fragrances reaffirmed its FY26 outlook, expecting sales of $10.5 billion–$10.8 billion and adjusted operating EBITDA of $2.05 billion–$2.15 billion.
The company also maintained its currency-neutral growth expectations, with sales growth of 1% to 4% and adjusted EBITDA growth of 3%–8% for the year.
IFF Earnings Preview and Analyst Estimates
International Flavors & Fragrances is slated to provide its next financial update on Aug. 4, 2026 (estimated).
- EPS Estimate: $1.12 (Down from $1.15)
- Revenue Estimate: $2.70 billion (Down from $2.76 billion)
- Valuation: P/E of 24.2x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $93.18. Recent analyst moves include:
- Barclays: Overweight (Raises target to $90 on May 8)
- Citigroup: Buy (Raises target to $96 on May 7)
- JP Morgan: Overweight (Raises target to $92 on May 7)
Top ETFs Holding IFF Stock
- FPA Global Equity ETF (NASDAQ:FPA): 3.55% Weight
- Invesco S&P 500 Equal Weight Materials ETF (NYSE:RSPM): 4.05% Weight
- Brandes US Small-Mid Cap Value ETF (NASDAQ:BSMC): 2.46% Weight
Significance: Because IFF carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
IFF Stock Price Activity: International Flavors & Fragrances shares were down 0.15% at $77.92 at publication on Friday, according to Benzinga Pro data.
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