BASF To Divest Majority Stake In Coatings Business To Carlyle And QIA In 7.7 Bln Euro Deal

(RTTNews) - German chemical producer BASF SE (BASFY.PK) and funds managed by global investment firm Carlyle Group Inc. (CG), in partnership with Qatar Investment Authority (QIA), on Friday entered into a binding agreement relating to BASF's automotive OEM coatings, automotive refinish coatings, and surface treatment businesses, BASF Coatings. The enterprise value of the transaction amounts to 7.7 billion euros.

The transaction, subject to customary regulatory approvals, is expected to close in the second quarter of 2026. This transaction, together with the already closed divestiture of the decorative paints business, value BASF's entire Coatings division at an enterprise value of 8.7 billion euros.

BASF will also reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of approx. 5.8 billion euros at closing of the transaction.

BASF Coatings is a global player in the development, production and marketing of innovative and sustainable automotive OEM and refinish coatings as well as applied surface treatments for metal, plastic and glass substrates in a wide range of industries.

The business operates in Europe, North America, South America and Asia Pacific, and generated sales of approx. 3.8 billion euros in 2024.

Working closely alongside management, Carlyle will support the future growth of the business through investing in its commercial capabilities, innovation pipeline, and organizational structure to enhance customer focus.