The deal, combined with BASF’s earlier divestment of its decorative paints business, values the company’s entire Coatings division at €8.7 billion, reflecting an implied 2024 EV/EBITDA multiple before special items of approximately 13x. BASF will retain a 40% equity stake in the business and is expected to receive around €5.8 billion in pre-tax cash proceeds at closing.
BASF and global investment firm Carlyle, in partnership with the Qatar Investment Authority (QIA), have reached a binding agreement to transfer BASF’s automotive OEM coatings, automotive refinish coatings, and surface treatment businesses, collectively known as BASF Coatings. The enterprise value of the transaction has been set at €7.7 billion, with closing expected in the second quarter of 2026, subject to customary regulatory approvals.
BASF Coatings operates globally, providing innovative and sustainable coatings for automotive OEMs, automotive refinish, and surface treatments for metal, plastic, and glass across multiple industries. The business, which has a presence in Europe, North America, South America, and Asia Pacific, generated sales of around €3.8 billion in 2024.
Carlyle will work closely with BASF Coatings’ management to support future growth by investing in commercial capabilities, innovation, and organisational structure, enhancing customer focus. Carlyle brings extensive experience in industrial and chemical carve-outs, having previously invested in Axalta, Atotech, and Nouryon.
“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,” has stated Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE.
“The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future,” has commented Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division.
“BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint. 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,” have added Martin Sumner, Global Head of Industrials, and Tanaka Maswoswe, Partner at Carlyle.
“QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth. 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,” has concluded Mohammed Al-Sowaidi, CEO of QIA.
BASF has assured that business continuity for customers will be maintained throughout the transaction process and that employee representatives will be involved in accordance with legal requirements and local practice.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm managing $465 billion in assets across Global Private Equity, Global Credit, and Carlyle AlpInvest. With more than 2,300 employees in 27 offices worldwide, Carlyle focuses on creating value for investors, portfolio companies, and communities.
About QIA
The Qatar Investment Authority (QIA) is the sovereign wealth fund of the State of Qatar, established in 2005 to manage state reserves. QIA invests globally across multiple asset classes in partnership with leading institutions to achieve long-term, sustainable returns.