BASF sells coatings unit to Carlyle for €7.7 billion

Investing.com -- BASF SE agreed to sell its automotive and surface treatment coatings businesses to funds managed by Carlyle Group Inc. and Qatar Investment Authority for €7.7 billion in enterprise value, the companies announced on Friday.

The transaction, subject to regulatory approvals, is expected to close in the second quarter of 2026. BASF will retain a 40% equity stake in the business and receive approximately €5.8 billion in pre-tax cash proceeds at closing.

The deal values BASF’s entire Coatings division at €8.7 billion enterprise value, including a previously completed sale of the decorative paints business. This represents an implied 2024 enterprise value to EBITDA multiple of approximately 13 times before special items.

BASF Coatings operates globally across Europe, North America, South America and Asia Pacific, generating sales of approximately €3.8 billion in 2024. The business develops, produces and markets automotive original equipment manufacturer coatings, automotive refinish coatings, and surface treatments for metal, plastic and glass substrates across various industries.

"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.

Carlyle has previous experience with industrial and chemical carve-outs through investments in Axalta, Atotech, and Nouryon. The investment firm plans to support the coatings business through investments in commercial capabilities, innovation pipeline, and organizational structure.

The transaction forms part of BASF’s strategy to unlock value from standalone businesses. Employee representatives will be involved in the process according to legal requirements and local practice.