Carbyne Equity Partners portfolio holding SuanNutra on Monday, July 20, said it will acquire certain specialty natural ingredients businesses from International Flavors & Fragrances Inc. (IFF).

Neither Madrid-based SuanNutra nor New York-based IFF in a separate statement disclosed the terms of the transaction, which includes IFF’s botanical extracts, vitamins and minerals and food enhancement activities. The sale also includes IFF’s natural colors and antioxidants offerings and certain flavor activities in Peru.

The Deal in January reported IFF was seeking a double-digit multiple for its botanicals segment, which generates $20 million to $25 million of Ebitda. First-round bids were due in mid-December, The Deal reported, adding that private equity firms with an expertise in specialty ingredients and active funds focused on complex carveout transactions were logical suitors.

IFF said the segment had roughly $170 million in revenue last year. It produces ingredients commonly used to make supplements, food products and cosmetics such as olive leaf extract and natural betaine.

SuanNutra, which offers nutraceutical ingredients for nutritional supplements, food and beverage and animal feed applications through Monteloeder, Gonmisol and Suannutra USA, said the acquisition will allow it to expand into food-enhancement ingredients. The enlarged company will have roughly 700 employees and more than 1,200 customers worldwide.

Carbyne acquired Carbyne, which also provides active ingredients for cosmetics, in December from ArchiMed SAS holding Suanfarma SA.

Founded in 2023, Hamburg-based Carbyne invests in growing European healthcare, nutrition and ingredients and agricultural input businesses. It invests up to €150 million ($171.5 million) for buyouts and €50 million for growth equity investments.

IFF, a chemicals and ingredients giant, in its own statement said the divestiture comes as it optimizes its portfolio and focuses on core businesses with the highest growth potential.

The company in May agreed to sell its food ingredients business to funds managed by CVC Capital Partners plc at a roughly $4.3 billion valuation.

IFF has been divesting assets over the past few years following pressure from billionaire activist investor Carl C. Icahn amid a debt pile that remained above 4 times Ebitda roughly four years after the company agreed to acquire the nutrition and biosciences division of DuPont de Nemours Inc. (DD) for $26.2 billion in 2021.

IFF announced in March 2024 that Roquette Freres SA had agreed to buy its pharma solutions unit at a valuation of up to $2.85 billion. The sale, coupled with the $810 million sale of Lucas Meyer Cosmetics to Clariant AG in 2023, were viewed by company watchers as positive steps forward.

IFF reported 2.5 times net debt to credit-adjusted Ebitda early in May in its first-quarter results.

IFF and SuanNutra expect the transaction to close by year’s end.

SuanNutra looked to EY-Parthenon for financial advice and Marcos Fernández-Rico Núñez of Herbert Smith Freehills Kramer LLP for counsel. Carbyne managing partner Markus Petersen and investment director Mai Karas worked on the acquisition internally along with SuanNutra CEO Anthony Weston and nonexecutive chairman Yoni Glickman.

EY and HSF Kramer also advised Carbyne on the SuanNutra carveout.

IFF used Alantra Partners SA for financial advice and Ryan W.H. Starr, Jonathan Klein, Peter Philips and Andrew Rivera of DLA Piper for counsel.