BASF has confirmed the sale of its coatings business to become a standalone company.
The global chemicals giant and Carlyle, a global investment firm announced a binding transaction agreement for €7.7 billion ( about AUD $14 billion) for the business.
Carlyle will work in partnership with Qatar Investment Authority to the sale that has been in thr news for more than four months with the transaction is expected to be completed by the middle of 2026.
One of the market leaders in automotive coatings and finishing technology, BASF has a strong presence in Europe, North America, South America and Asia Pacific, and generated sales of approx. €3.8 billion in 2024.
“This represents a significant step in unlocking the value of BASF’s standalone businesses, as the company swiftly executes its Winning Ways strategy, Carlyle said ina statement.
“BASF will also reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of approx. €5.8 billion at closing of the transaction.
“Working closely alongside management, Carlyle will support the future growth of the business through investing in its commercial capabilities, innovation pipeline, and organizational structure to enhance customer focus. Carlyle will leverage its strong track record and extensive experience in successful carve-outs of industrial and chemical assets, following previous investments in Axalta, Atotech, and Nouryon.
Responses
“We are delighted to partner with Carlyle, whose sector expertise, carve-out capabilities and collaborative approach will help position BASF Coatings for long-term success,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. “By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential. The passion, expertise, and customer focus of our Coatings team is what makes this business outstanding.”
“The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future,” said Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division.
“BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint,” said Martin Sumner, Global Head of Industrials, and Tanaka Maswoswe, Partner at Carlyle.
“We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.”
The company also said it would aim to ensure business continuity for customers throughout the transaction process.