German chemical giant BASF SE is weighing the sale of its coatings division, seeking a valuation of approximately 6 billion euros ($6.81 billion), according to a Bloomberg News report published May 30. The move is part of an effort by BASF to streamline operations and increase profitability.
The report noted that U.S. private equity firm Carlyle Group and global paint manufacturer Sherwin-Williams are considering a joint bid for the unit. Other interested parties reportedly include private equity firms CVC Capital Partners, Lone Star Funds, Advent, Bain Capital, Blackstone and Platinum Equity, all of whom are evaluating the opportunity individually.
“We are approaching the market to explore strategic options for the remaining coatings activities,” a BASF spokesperson told Bloomberg.
The potential sale follows BASF’s December 2023 announcement to transform its agriculture, battery materials and coatings units into autonomous businesses, a structural shift aimed at boosting earnings. The coatings business in question includes products used across automotive, industrial and decorative applications, though specifics about assets included in the possible transaction have not been confirmed.
BASF's CFO said earlier in May the company would begin sounding out potential buyers during the second quarter of 2025. The company had already spun off its catalytic converter business into a more independent structure before announcing these changes.
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