IFF to Divest Food Ingredients; Authorizes $2.5B Share Buyback
International Flavors & Fragrances Inc. (IFF) reported strong second quarter 2026 results on a continuing operations basis, with net sales of $1.95 billion and adjusted operating EBITDA of $408 million. The company announced a definitive agreement to sell its Food Ingredients business to CVC Capital Partners for approximately $3.8 billion, retaining a 10% minority interest. IFF also authorized an enhanced $2.5 billion share repurchase program, including a $500 million accelerated repurchase in the second half of 2026, and plans to use over $1 billion of the divestment proceeds to reduce debt. The divestment is expected to close by the end of Q2 2027, sharpening IFF's focus on its core Taste, Scent, and Health & Biosciences segments.
Key Highlights
- IFF to sell its Food Ingredients business to CVC Capital Partners for ~$3.8B.
- Company authorized an enhanced $2.5B share repurchase program.
- Includes a $500M accelerated share repurchase in H2 2026.
- Net proceeds from divestment will reduce outstanding debt by over $1B.
- Q2 2026 Net Sales from continuing operations were $1.95B, up 2% YoY.
- Q2 2026 Adjusted Operating EBITDA from continuing operations was $408M, up 2% YoY.
- Full-year 2026 sales guidance for continuing operations is $7.4B to $7.6B.
- Full-year 2026 adjusted operating EBITDA guidance for continuing operations is $1.53B to $1.60B.
Price Impact
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