JPMorgan and BofA prepare $2.4bn financing for CVC’s IFF acquisition
JPMorgan Chase and Bank of America are preparing to market approximately $2.4bn in leveraged loans backing CVC Capital Partners' acquisition of International Flavors & Fragrances' (IFF) food ingredients business, according to a report by Bloomberg.
Two major banks, JPMorgan Chase and Bank of America, are in the process of marketing approximately $2.4 billion in leveraged loans to support CVC Capital Partners' acquisition of International Flavors & Fragrances' (IFF) food ingredients business, according to a report by Bloomberg. The two financial institutions are anticipated to commence pre-marketing the cross-border financing to a select group of investors prior to launching a wider syndication process in the coming weeks.
JPMorgan will be responsible for overseeing the euro-denominated portion of the loan, while Bank of America will handle the dollar portion, which could be around $1.5 billion in size. The acquisition, which was agreed upon in May, values the business at $4.3 billion, with IFF holding a 10% stake in the deal. The food ingredients business supplies essential components such as texturants, emulsifiers, and other specialty ingredients utilized across the food and beverage industry.
The financing is part of a broader trend where banks are seeking to distribute underwriting commitments ahead of the year-end, with additional debt packages supporting CVC's acquisitions of bakery ingredients supplier Irca and DSM-Firmenich's animal nutrition and health division also awaiting syndication. These transactions are part of CVC's ongoing expansion in the global ingredients sector.
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