BASF sells BASF Coatings to financial investor Carlyle

BASF and funds have entered into a binding agreement with the global investment company Carlyle, in partnership with the Qatar Investment Authority, for the BASF business units Automotive OEM Coatings, Automotive Refinish Coatings and Surface Technologies, formerly known as BASF Coatings. The enterprise value of the transaction amounts to 7.7 billion euros. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals. The enterprise value of BASF's entire Coatings division after this transaction, together with the already completed divestment of the decorative coatings business, amounts to 8.7 billion euros. According to the company, BASF will retain a 40 percent stake in the Coatings business and will also receive a pre-tax cash inflow of approximately €5.8 billion upon closing of the transaction.

Carlyle wants to support the growth of BASF Coatings

BASF Coatings is a global player in the development, production and marketing of automotive OEM and refinish coatings as well as applied surface technology for metal, plastic and glass substrates for numerous industries. The division operates in Europe, North America, South America and Asia-Pacific and generated sales of around EUR 3.8 billion in 2024. Carlyle will work closely with management to support the future growth of the business by investing in commercial capabilities, the innovation pipeline and organizational structure to strengthen customer focus. Carlyle will bring its strong track record and extensive experience in successful carve-outs of industrial and chemical assets, including previous investments in Axalta, Atotech and Nouryon. "We look forward to partnering with Carlyle, whose industry expertise, carve-out capabilities and collaborative approach will position BASF Coatings for long-term success," said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. "By holding an equity stake, we are demonstrating our confidence in the future value creation and potential of the Coatings business. The passion, expertise and customer focus of our Coatings team make this business exceptional."

BASF Coatings to become an independent market leader

"The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today's success and shaping an even stronger future," said Anup Kothari, Member of the Board of Executive Directors of BASF SE and responsible for the Coatings division. "BASF Coatings is exceptional due to leading technologies, a world-class management team, strong customer relationships and a global footprint," said Martin Sumner, Global Head of Industrials, and Tanaka Maswoswe, Partner at Carlyle. "We are confident in the opportunities to leverage our global platform to position the business as an established independent market leader. This transaction underscores Carlyle's ability to execute complex carve-outs in partnership with leading global companies." "QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings' continued growth," said Mohammed Al-Sowaidi, CEO of QIA. "This investment is consistent with QIA's approach of investing in industry leaders and demonstrates our confidence in the long-term resilience of German companies." Business continuity for customers will be ensured throughout the process. Employee representatives are involved in accordance with legal requirements and local practice.