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, automotive refinish coatings, and surface treatment businesses — collectively known as BASF Coatings.
The enterprise value of the transaction stands at €7.7 billion, with closing expected in Q2 2026, pending customary regulatory approvals. Together with BASF’s recently completed divestiture of its decorative paints business, the deal values the entire Coatings division at €8.7 billion, representing an implied 2024 EV/EBITDA multiple of around 13x before special items. This transaction marks a significant milestone in BASF’s Winning Ways strategy. It aims to unlock value from standalone businesses and strengthen the focus on core operations.
BASF Retains Strategic Stake and Receives €5.8 Billion Proceeds
As part of the agreement, BASF will reinvest in the Coatings business, retaining a 40% equity stake. The company will receive approximately €5.8 billion in pre-tax cash proceeds upon closing. Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, highlighted, “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.”
A Global Leader in Coatings Innovation
BASF Coatings is a leading global player in automotive OEM and refinish coatings. It also provides applied surface treatments for metal, plastic, and glass substrates across diverse industries. Operating across Europe, North America, South America, and Asia-Pacific, the business generated €3.8 billion in sales in 2024. BASF Coatings focuses on innovation and sustainability. It delivers advanced solutions that enhance performance, aesthetics, and environmental efficiency in the automotive and industrial sectors.
Carlyle and QIA to Drive Next Phase of Growth
Carlyle plans to support the future growth of BASF Coatings by investing in its commercial capabilities, innovation pipeline, and organizational structure. This will help reinforce customer focus and strengthen market leadership. It has a strong track record in industrial and chemical carve-outs, including Axalta, Atotech, and Nouryon. It aims to guide BASF Coatings toward independent leadership and global expansion.
“BASF Coatings is an exceptional platform with leading technologies, a world-class management team, and strong customer partnerships,” said Martin Sumner, Global Head of Industrials, and Tanaka Maswoswe, Partner at Carlyle. “This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.”
QIA also expressed confidence in the deal’s long-term potential. “This investment aligns with QIA’s approach of supporting industry leaders and reflects our belief in the long-term resilience of German businesses,” said Mohammed Al-Sowaidi, CEO of QIA.
Ensuring Business Continuity and Smooth Transition
As per company press release, BASF confirmed that business continuity for customers will remain unaffected during the transition period. Employee representatives will also be involved in accordance with legal requirements and local practices. This will help ensure a smooth and transparent process. Anup Kothari, member of BASF’s Board of Executive Directors and responsible for the Coatings division, summed, “The transaction opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future.”
