BASF, Carlyle strike €7.7bn coatings deal

Ludwigshafen, Germany – BASF SE and US investment firm Carlyle have inked an agreement for Carlyle and Qatar Investment Authority (QIA) to acquire BASF’s automotive OEM coatings, refinish coatings, and surface treatment businesses for an enterprise value of €7.7 billion.

The deal, announced 10 Oct, values BASF’s full coatings division at €8.7 billion, implying a 2024 EV/EBITDA multiple of around 13 times before special items.

Subject to regulatory approvals, closing is expected in the second quarter of 2026, said BASF in a statement.

The German group will then reinvest in the new standalone coatings company to be created post-divestment, retaining a 40% equity stake.

Overall, the German group expects to receive pre-tax cash proceeds of about €5.8 billion at closing.

“This represents a significant step in unlocking the value of BASF’s standalone businesses,” the group said, citing progress in executing its ‘winning ways’ strategy.

BASF Coatings generated €3.8 billion in sales in 2024 across Europe, North America, South America and Asia Pacific.

The business develops automotive OEM and refinish coatings, along with applied surface treatments for metal, plastic and glass substrates.

Carlyle said it will support the company’s next phase of growth by strengthening commercial capabilities and innovation, drawing on experience from previous carve-outs in Axalta, Atotech and Nouryon.