BASF and Sherwin-Williams have signed an agreement to sell the Brazilian decorative paints business of BASF's Coatings division. The purchase price, excluding cash and financial liabilities, is $1.15 billion. The transaction is structured as a so-called share deal. It includes the production facilities in Demarchi and Jaboatão, the associated 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. With sales of around $525 million in 2024, the decorative paints business is BASF's only major business-to-consumer business.
BASF continues to focus on strategic core business
“The signing marks an important step in unlocking the value of our standalone businesses, and I am delighted 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 decorative paints business will continue to thrive as part of Sherwin-Williams. We are deeply grateful to our employees for their hard work and dedication, which have made Suvinil the most recognized brand for decorative paints in Brazil.”
Sherwin-Williams expects synergies from the integration of Suvinil
“For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well-known and highly-trusted by purchasing influencers and specifiers across the value chain. We are excited to capitalize on the strengths of both companies to further enhance value for customers,” said Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer. “We have tremendous respect for the expertise and dedication of the Suvinil team, and we are excited about the opportunities that this combination will provide to customers and employees.”
BASF is examining further development options for the remaining coatings business
Until the transaction is completed, BASF and Sherwin-Williams will continue to operate as strictly independent companies. Business continuity for customers will be ensured throughout the transaction process. Employee representatives of the architectural coatings business will be involved in accordance with legal requirements and local practice.
BASF intends to go to market in the second quarter of 2025 to explore further strategic options for the remaining coatings business, including automotive and automotive refinish coatings as well as surface treatment.
