IFF Sells Savory Solutions Business to PAI Partners

Cleary Gottlieb is representing long-time client International Flavors & Fragrances Inc. (IFF) on the sale of its savory solutions business to PAI Partners (PAI).

The transaction values the business at approximately $900 million.

The share purchase agreement was signed on December 20, 2022. The transaction, which was announced on the same day, is expected to close in the second quarter of 2023, subject to regulatory approvals and other customary closing conditions. Lazard and J.P. Morgan Securities are acting as financial advisors to IFF.

IFF’s savory solutions business 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 business serves more than 11,000 customers, and generated approximately $475 million in revenue over the last 12 months. The transaction values the business at approximately 14x the last 12-month EBITDA..

PAI is a leading global private equity firm with a strong focus on the food and consumer industry.