IFF has entered into an agreement to sell its Savory Solutions Group to PAI Partners for approximately $900 million.

Cash proceeds net of taxes and expenses will be used primarily to reduce outstanding debt.

IFF’s Savory Solutions supplies ingredients for prepared foods and foodservice, including products for butchers and plant-based solutions for the vegan and vegetarian markets. The group has several business units operating out of Austria, Germany, Italy, Ireland, Poland, Canada, Mexico and Thailand.

With approximately 1,800 employees, IFF’s Savory Solutions has served over 11,000 customers and generated nearly $475 million in revenue over the last 12 months.

IFF CEO Frank Clyburn said: “A key aspect of our strategy is to continuously evaluate our portfolio to identify opportunities to maximise shareholder value. The sale of IFF’s Savory Solutions Group is an important milestone as it allows us to focus on our highest-return businesses, improve our capital structure and enhance our go-forward growth and return profile.”

He continued: “We appreciate the contributions of our Savory Solutions colleagues who have, for years, demonstrated their commitment to innovation, service and quality. We will work closely with PAI Partners to have a successful transition and look forward to Savory Solutions’ future under its ownership.”

The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions and regulatory clearances.