BASF and Carlyle Seal Deal to Form Leading Coatings Company

BASF and funds managed by global investment firm Carlyle, in partnership with the Qatar Investment Authority (QIA), have entered into a binding agreement for BASF’s automotive OEM coatings, refinish coatings, and surface treatment businesses (“BASF Coatings”). The transaction values the business at €7.7 billion and is expected to close in Q2 2026, subject to regulatory approvals.

Including the earlier sale of its decorative paints unit, BASF’s Coatings division is valued at €8.7 billion, implying a 2024 EV/EBITDA multiple of about 13x. BASF will retain a 40% equity stake and receive pre-tax cash proceeds of approximately €5.8 billion upon closing, marking a key milestone in its Winning Ways strategy to unlock business value.

BASF Coatings generated around €3.8 billion in 2024 sales across Europe, the Americas, and Asia Pacific, providing innovative and sustainable coating and surface treatment solutions. Carlyle aims to accelerate the company’s growth by strengthening its commercial, innovation, and organizational capabilities, leveraging its extensive experience in industrial and chemical carve-outs, including prior investments in Axalta, Atotech, and Nouryon.

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. 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.

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. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.

Source: BASF