NEW YORK — UK-based private equity firm Exponent has entered into an agreement to acquire the Flavor Specialty Ingredients (FSI) business of IFF. The transaction is valued at $220 million, and IFF will use proceeds from the sale to reduce outstanding debt.

Previously operating as part of IFF’s Scent division, the FSI unit manufactured specialty natural and synthetic base aroma chemicals for flavor applications. The business generated more than $100 million in revenue over the last 12 months.

“Aligned with our strategy, we’re continuously evaluating our portfolio to identify opportunities to strengthen our financial profile,” said Frank Clyburn, chief executive officer of IFF. “The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns.”

Included in the sale are FSI’s four manufacturing and distribution sites located in the United Kingdom, United States and China. The agreement is expected to be finalized by the end of the third fiscal quarter in 2023.

The deal comes just two months after IFF entered into a sales agreement for its savory solutions group worth $900 million.