JPMorgan and BofA prepare $2.4bn financing for CVC's IFF acquisition

JPMorgan Chase and Bank of America are reportedly preparing a $2.4 billion financing package to support CVC Capital Partners' acquisition of International Flavors & Fragrances (IFF) food ingredients business. The banks are anticipated to initiate pre-marketing of the cross-border funding to select investors before embarking on a wider syndication process in the coming weeks, according to a Bloomberg report.

JPMorgan will handle the euro-denominated portion of the loan, while Bank of America will manage the dollar component, which could be as much as $1.5 billion. The deal, which was agreed upon in May, values IFF's food ingredients division at $4.3 billion, with IFF retaining a 10% ownership stake. The company produces a range of texturants, emulsifiers, and other specialized ingredients utilized in the food and beverage industries.

This financing follows a pattern of banks distributing underwriting commitments before the year-end, with other debt packages supporting CVC's acquisitions of bakery ingredients supplier Irca and DSM-Firmenich's animal nutrition and health division now awaiting syndication. These transactions are part of CVC's ongoing expansion strategy within the global ingredients sector.