BASF Sells Coatings Business for €7.7 Billion, Forming Independent Company with Carlyle

Global investment firm Carlyle and Qatar Investment Authority (QIA) have entered into a binding agreement to acquire BASF's automotive OEM coatings, automotive refinish coatings, and surface treatment businesses (BASF Coatings).

The transaction has an enterprise value of €7.7 billion and is expected to close in the second quarter of 2026.

Including the previously completed divestiture of its decorative paints business, the entire BASF Coatings segment is valued at approximately €8.7 billion, representing a 2024 EV/EBITDA multiple of approximately 13x, excluding special items.

Upon completion of the transaction, BASF will reinvest in the coatings business and retain a 40% stake, with expected pre-tax cash proceeds of approximately €5.8 billion.

Markus Kamieth, Chairman of the Board of Management of BASF, said, "Carlyle's industry expertise, divestiture capabilities, and collaborative approach will contribute to the long-term success of BASF's Coatings business. By retaining an equity stake, we demonstrate our confidence in the future value creation and growth potential of our Coatings business. The passion, expertise, and customer focus of our Coatings team are key to its success."

Anup Kothari, Member of the BASF Board of Executive Directors and Head of the Coatings business, said this transaction marks a new chapter for BASF's Coatings business and will further strengthen future growth by building on its existing success.

Martin Sumner, Head of the Carlyle Group's Global Industrial Sector, and Tanaka Maswoswe, Partner, stated that BASF Coatings represents a highly promising platform with its leading technology, exceptional management team, strong customer relationships, and global presence. Carlyle will leverage its global resources to help it become an independent industry leader.

QIA stated that its joint investment with Carlyle aligns with its industry strategy and demonstrates confidence in the long-term resilience of the German manufacturing industry.

BASF's Coatings division, headquartered in Münster, North Rhine-Westphalia, Germany, is a leading global developer and manufacturer of sustainable automotive OEM and refinish coatings. It also provides surface technologies for metal, plastic, and glass substrates to a wide range of industries. The division operates in Europe, North America, South America, and Asia Pacific, with sales of approximately €3.8 billion in 2024. The transaction includes approximately 10,700 employees across 160 associated production sites across the three BASF Coatings divisions, some of which remain jointly operated with BASF.