M&As: Carlyle to acquire BASF’s coatings business for EUR7 bn

Funds managed by global investment firm Carlyle, in partnership with Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, are to acquire German chemicals firmBASF’s automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. The enterprise value of the transaction amounts to EUR7.7 billion. Subject to customary regulatory approvals, the transaction is expected to close in Q2 2026.

This transaction, together with the already closed divestiture of the decorative paints business, value BASF’s entire Coatings division at an enterprise value of EUR8.7 billion and an implied 2024 EV/EBITDA multiple before special items of approx. 13x.

BASF will also reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of approx. EUR5.8 billion at closing of the transaction.

BASF Coatings is a global player in the development, production and marketing of automotive OEM and refinish coatings as well as applied surface treatments for metal, plastic and glass substrates in a wide range of industries. The business operates in Europe, North America, South America and Asia Pacific, and generated sales of approx. EUR3.8 billion in 2024.

Working closely alongside management, Carlyle will support the future growth of the business through investing in its commercial capabilities, innovation pipeline, and organisational structure to enhance customer focus. Carlyle will leverage its strong track record and extensive experience in successful carve-outs of industrial and chemical assets, following previous investments in Axalta, Atotech, and Nouryon. 

Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, added, “By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential.”

“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.”

Business continuity for customers will be ensured throughout the transaction process. In accordance with legal requirements and local practice, employee representatives will be involved.

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