BASF sells Brazilian Decorative Coatings Business to Sherwin-Williams

BASF and Sherwin-Williams have signed an agreement to sell the Brazilian decorative coatings business, which is part of BASF's Coatings division. The purchase price on a cash and debt-free basis is $1.15 billion. The transaction is in the form of a share transaction and includes the production sites in Demarchi and Jaboatão, related contracts, the Suvinil and Glasu! brands and approximately 1,000 employees. The divestiture is expected to be completed in the second half of 2025, subject to approval by the relevant competition authorities.

The decorative coatings business is BASF's only sizable B2C business with sales of approximately $525 million in 2024 and a broad portfolio of coatings and coating preparation products and digital solutions. The business operates almost entirely in Brazil and has limited synergies with other coatings businesses within BASF.

“This signing marks an important step in unlocking the value of our standalone business and I am pleased that we have made such rapid progress in finding a new home for Suvinil,” said Anup Kothari, Member of the Board of Executive Directors of BASF SE, Head of the Coatings division. “We are confident that the Decorative Paints business will continue to thrive under Sherwin-Williams. We are extremely grateful to our employees for their hard work and dedication, which has made Suvinil the most recognized decorative paint brand in Brazil.”

“For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well known across the value chain and trusted by purchasing influencers and specifiers. We are excited to leverage the strengths of both companies to further enhance customer value. We have great respect for the expertise and dedication of the Suvinil team and we are excited about the opportunities this combination will bring to our customers and employees.”

BASF and Sherwin-Williams will continue to operate as strictly independent companies until the transaction closes. Business continuity for customers will be ensured throughout the transaction. Employee representatives from the Decorative Paints business will be involved, as required by law and local practice.

In the second quarter of 2025, BASF intends to further explore strategic options for its remaining coatings business, which includes automotive OEM coatings, refinish coatings and surface treatment.