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BASF to sell Brazilian decorative paints business to Sherwin-Williams
BASF has signed an agreement to sell its Brazilian decorative paints business to Sherwin-Williams. The selling price is USD 1.15 billion (approximately EUR 1.07 billion) on a cash- and debt-free basis. The transaction includes the production sites in Demarchi and Jaboatão, existing contracts and the Suvinil and Glasu! brands. Approximately 1,000 employees will transfer to Sherwin-Williams. The closing of the acquisition is subject to approval by the relevant competition authorities and is expected in the second half of 2025.
BASF’s decorative paints business generated sales of approximately USD 525 million (approx. EUR 490 million) in 2024. This is BASF’s only significant B2C business with an extensive product portfolio for paints and colour preparations as well as digital solutions. As the business operates almost exclusively in Brazil and has only limited synergies with other coating areas within BASF, the sale was decided upon as a strategic measure.
New prospects for Suvinil under Sherwin-Williams
Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division, described the transaction as an important step in increasing the company’s value. He expressed confidence that the decorative paints business would continue to be successful under the ownership of Sherwin-Williams.
Heidi G. Petz, CEO of Sherwin-Williams, explained that the acquisition is a strategic addition for the company in Latin America. Suvinil enjoys a high level of trust among key buyers in Brazil and has been synonymous with innovation and quality for over 60 years. Petz emphasised that Sherwin-Williams intends to leverage the strengths of both companies to further increase customer value. Until the transaction is completed, BASF and Sherwin-Williams will continue to operate as independent companies. Business continuity will be ensured throughout the entire process. Employee representatives of the affected business unit will be involved in the process in accordance with local regulations.
In addition, BASF plans to evaluate strategic options for its remaining coatings activities in the second quarter of 2025. These include, among others, automotive OEM coatings, refinish coatings and surface treatments.
