IFF is contemplating a sale of personal care ingredient producer Lucas Meyer Cosmetics, according to media reports.
Bloomberg said IFF has appointed an adviser to explore options for the Quebec City-based business it acquired from Unipex Group for €283m ($306m) in 2015.
The report speculated that Lucas Meyer Cosmetics, valued at around $1 billion, could attract interest from Croda International, Givaudan and Symrise.
Deliberations are ongoing and IFF could opt to keep the business, Bloomberg said.
Earlier this month, IFF reduced its full year 2023 sales forecast to $12.3 billion from $12.5 billion.
The company said the change in sales guidance reflects energy and raw material pass-through price adjustments as well as unfavourable impact from foreign exchange.
“As we look ahead to the balance of the year, we continue to believe our volume performance will improve, yet acknowledge that market conditions remain uncertain,” said IFF CEO Frank Clyburn.
“As such, we remain steadfast in our focus to control what we can control as we solidify profitability, maximize cash flow and drive portfolio optimization to generate strong returns for our shareholders.”