International Flavors & Fragrances: Letting Go of Food Ingredients

Research evidence excerpt

International Flavors & Fragrances: Letting Go of Food Ingredients

Equity Research

U.S. CHPC & Beverages

29 May 2026

International Flavors & Fragrances

Letting Go of Food Ingredients

As IFF has just announced the sale of its Food Ingredients

business, we think investors will now begin to turn their

attention to what we consider to be "The New IFF" and future IFF OVERWEIGHT

U.S. CHPC & Beverages NEUTRAL

growth prospects. Price Target USD 90.00

Price (28-May-26) USD 78.03

Potential Upside/Downside +15.3%

Source: Bloomberg, Barclays Research

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Lauren R. Lieberman

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votes in this year’s Extel All-America Research lauren.lieberman@barclays.comBCI, US

Survey Kate Grafstein

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Jim Abbott V

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Earlier this morning, IFF announced it has entered into an agreement to sell its Food Ingredients BCI, US

business to CVC Capital Partners for $4.3 bn. This announcement should not come as a surprise,

Heather Gornik, CFAand if anything the timing should be received favorably as IFF management had mentioned on

+1 212 526 9237

its 1Q earnings call earlier this month that it would have an update by 2Q earnings in August. We heather.gornik@barclays.com

think the deal multiple (10x 2025 Adjusted EBITDA) is largely in-line to slightly better than BCI, US

investor expectations, as we think some had feared the Tate & Lyle/Ingredion transaction

multiple of 9x to be a ceiling for Food Ingredients. We estimate EPS dilution from the transaction

to be in the high-single digits before share buybacks and stranded overhead cost reduction, or