As part of its realignment, BASF is selling the majority of its Coatings division to the investment company Carlyle and the Qatar Investment Authority (QIA). This division comprises automotive production coatings, automotive refinish coatings and surface technology. The transaction is based on an enterprise value of €7.7 billion. The 60 percent of the coatings business that is up for sale will generate a cash inflow before taxes of around €5.8 billion. At the same time, the chemical company will retain a 40 percent stake in the coatings business.
Focus on independent BASF business units
The transaction is part of the “Winning Ways” strategy, with which the company aims to further develop independent business units in a targeted manner and make their market value more visible. Together with the previously completed sale of the architectural coatings business, the total value of the Coatings division now amounts to around €8.7 billion. The current transaction is expected to close in the second quarter of 2026, subject to regulatory approvals.
BASF Coatings remains globally positioned
The division generated sales of around €3.8 billion in 2024. It develops, produces and markets coating systems for metal, plastic and glass substrates, primarily for the automotive and supplier industries. With locations in Europe, North and South America, and Asia-Pacific, the division has a global presence. Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF, emphasizes: "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. The passion, expertise, and customer focus of our Coatings team is what makes this business outstanding."
Carlyle acquires majority stake and brings industry experience
Carlyle will hold a majority stake in BASF Coatings and support the further development of the business through investments in technology, customer proximity and organizational structures. Together with QIA, commercial capacities will be expanded, innovation processes strengthened and global competitiveness increased.
The investor points to successful carve-out experiences from previous investments, including Axalta, Atotech, and Nouryon. “BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint,” said Martin Sumner and Tanaka Maswoswe of Carlyle. "We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates."
BASF remains involved and ensures business continuity
The chemical company retains a 40 percent minority stake in the coatings business. This means that the company will remain closely involved and actively support the future development of the division. At the same time, business continuity for customers worldwide will be ensured throughout the entire process. "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 aligns with QIA’s approach of investing in industry leaders and is testament to our belief in the long-term resilience of German businesses.”
