M&As: Dow to sell Turkish carbon fibre jv for US$125 million; BASF to sell coatings business valued at EUR6 bn
US materials firm Dow has announced that it has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Turkey’s Aksa Akrilik Kimya Sanayii, a company of Akkök Holding. The transaction will close in the third quarter of the year.
Aksa Aksa Akrilik Kimya Sanayii, the other 50% joint venture partner, has agreed to acquire Dow's 50% interest. Dow's proceeds from the sale are expected to be US$125 million, which reflects, after accounting for debt, an enterprise value of approximately 10x the estimated 2025 operating EBITDA.
Dow said its decision to exit the joint venture, which was formed in 2012, is consistent with its strategy of focusing on its core, high-value downstream businesses.
The proceeds from the transaction will be used to support the company's balanced capital allocation approach.
The sale is expected to close in the third quarter of 2025, subject to customary regulatory approvals and other closing conditions.
In other news, Germany’s BASF SE has kicked off a sale of its coatings business, in a process that could value the unit at about EUR6 billion and attract bids from large buyout firms, according to a Bloomberg report.
The German chemical company has sent out information on the business to potential suitors in recent weeks, the report said.
Carlyle Group Inc. is considering bidding for the coatings business together with paint-maker Sherwin-Williams Co, plus it is also attracting early interest from CVC Capital Partners Plc and Lone Star Funds.
Other private equity firms including Advent, Bain Capital, Blackstone Inc. and Platinum Equity are separately planning to evaluate the business. The BASF unit could also attract interest from rival companies in the coatings industry.
Deliberations are at an early stage, and there’s no certainty the prospective suitors will proceed with offers.
A representative for BASF said the intention is to explore options for the remaining coatings activities in one package, adding there is “high interest” from strategic buyers, private equity firms and consortia.
“We are approaching the market to explore strategic options for the remaining coatings activities,” the spokesperson said. “Discussions will be held with interested parties, and we are open to the outcome. It is too early to indicate what direction this may take.”
CEO Markus Kamieth has been reorienting BASF to counter high energy prices and a decline in global demand. The division had about EUR4.3 billion of sales in 2024.
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