IFF sells Savory Solutions Group to PAI Partners

IFF has entered into an agreement to sell its Savory Solutions Group to PAI Partners, a global private equity firm with a strong focus on the food and consumer industry. The transaction values the business at approximately $900M and cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt. IFF‘s Savory Solutions Group focuses primarily on ingredients for prepared foods and foodservice, including products for butchers, and plant-based solutions for the vegan and vegetarian markets. It includes several business units operating out of Austria, Germany, Italy, Ireland, Poland, Canada, Mexico and Thailand. With approximately 1,800 employees, IFF’s Savory Solutions generated approximately $475M in revenue over the last 12 months. The transaction values the business at approximately 14x the last 12-month EBITDA. IFF and PAI Partners expect to close the transaction in 2Q23, subject to customary closing conditions, including satisfaction of applicable consultation requirements, and regulatory clearances.