BASF has entered into an agreement to sell a majority stake in its coatings business — which includes automotive refinish products, as well as OEM coatings and surface treatments for metal, plastic and glass — to global investment firm Carlyle, in partnership with Qatar Investment Authority (QIA), valued at $8.9 billion.
BASF said it will retain a 40% equity stake and will receive pre-tax cash proceeds of about $6.7 billion when the sale closes, expected to happen in the second quarter of next year.
The 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 transaction, together with the already closed sale of its decorative paints business to Sherwin-Williams, value BASF’s entire Coatings division at $10.1 billion.
BASF Coatings operates in Europe, North America, South America and Asia Pacific, and generated sales of about $4.4 billion in 2024. The companies ensured a continuity in business for BASF’s customers.
In a joint statement, Carlyle said it will invest in the coatings business’ commercial capabilities, innovation pipeline and organizational structure to enhance customer focus.
“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.”
Martin Sumner, global head of industrials, and Tanaka Maswoswe, partner at Carlyle, said BASF Coatings is “an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint. We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader.”
“QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth,” said Mohammed Al-Sowaidi, CEO of QIA. “This investment aligns with QIA’s approach of investing in industry leaders and is testament to our belief in the long-term resilience of German businesses.”
