IFF accepted Icahn's director and started selling non-core units

IFF was digesting a large DuPont Nutrition and Biosciences merger when Carl Icahn pressed for change. In February 2022, IFF signed a cooperation agreement, expanded the board, and appointed Icahn-recommended Barry Bruno as an independent director.

The decision was not a headline breakup. IFF separated the chair and CEO roles, refreshed governance, and began portfolio optimization around businesses that did not fit the core food, scent, health and biosciences platform.

In October 2023, IFF agreed to sell its Cosmetic Ingredients business, including Lucas Meyer Cosmetics, to Clariant for $810M. Management said the cash proceeds would reduce debt and let IFF focus on core businesses.

IFF agreed to sell cosmetic ingredients for $810M and use proceeds to reduce debt.

The board seat gave Icahn information rights and influence over leadership and extraordinary transactions.

Selling a non-core unit addressed leverage without sacrificing the core flavor and fragrance platform.

A smaller portfolio made the post-merger integration problem easier to manage.

After a large merger disappoints, a board-level activist seat can force a portfolio reset without dismantling the core franchise.

IFF continued its portfolio optimization program into 2024, with the cosmetic-ingredients sale expected to close after works-council and regulatory steps. The company framed the reset as a best-owner discipline for debt reduction and focus.