BASF sells architectural coatings business

BASF and Sherwin-Williams have signed an agreement to sell the Brazilian architectural coatings business, which is part of BASF's Coatings division. The purchase price, excluding cash and debt, is US$1.15 billion. The transaction is structured as a share deal and includes the production sites in Demarchi and Jaboatão, the related contracts, the Suvinil and Glasu! brands and the approximately 1,000 employees. The sale is expected to be completed in the second half of 2025, subject to the approval of the relevant competition authorities. The architectural coatings business, which generated sales of around US$525 million in 2024, is BASF's only significant business-to-consumer business and has a broad portfolio of paints and paint preparation products as well as digital solutions. The business operates almost exclusively in Brazil and has limited synergies with other coatings businesses within BASF.

"The signing represents an important step in unlocking the value of our stand-alone businesses and I am pleased that we have made such rapid progress in finding a new home for Suvinil," said Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division. "We are convinced that the architectural coatings business will continue to develop successfully as part of Sherwin-Williams. We are very grateful to our employees for their hard work and dedication in making Suvinil the most recognized architectural coatings brand in Brazil." "Suvinil has been synonymous with innovation and quality for over 60 years. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well recognized and highly regarded by influencers across the value chain. We look forward to leveraging the strengths of both companies to further enhance value for customers," said Heidi G. Petz, Chairwoman, President and Chief Executive Officer of Sherwin-Williams. In the second quarter of 2025, BASF intends to go to market to explore further strategic options for its remaining coatings activities, which include automotive OEM and refinish coatings and surface treatments.