BASF Launches €6 Billion Coatings Business, Sparking Global Private Equity Interest

BASF has officially launched the sale of its coatings division, which is expected to fetch up to €6 billion ($6.8 billion), according to Bloomberg.

The process, led by Bank of America and JPMorgan Chase, is in its early stages, but several large private equity firms have taken notice.

Potential bidders reportedly include The Carlyle Group, CVC Capital Partners, Lone Star Fund, Advent International, Bain Capital, Blackstone Group and Platinum Equity. Carlyle is said to be exploring a joint acquisition with Sherwin-Williams, which acquired BASF's Brazilian coatings business for $1.15 billion earlier this year.

BASF's coatings business generated €4.3 billion in revenue in 2024, making it an attractive standalone platform for private equity investors seeking scale and global reach. The unit's diversified portfolio covers automotive, industrial and decorative coatings, offering significant opportunities for growth through operational improvements and bolt-on acquisitions.

A BASF spokesman confirmed the process, noting that "both strategic and private equity buyers have shown strong interest and negotiations are ongoing."

The sale reflects a broader trend of large-scale industrial divestitures in Europe, with DSM-Firmenich seeking to sell its €3 billion animal nutrition unit and BP selling its Castrol lubricants unit, which has attracted bids from companies including Apollo Global and Lone Star Funds.

If BASF's coatings business achieves the expected €6 billion in sales, it will be one of the largest industrial acquisitions in Europe this year.