BASF to sell Coatings business to Carlyle in EUR 7.7 billion deal

BASF has entered into a binding agreement to divest its automotive OEM coatings, refinish coatings, and surface treatment businesses – collectively known as BASF Coatings – to funds managed by The Carlyle Group, in partnership with the Qatar Investment Authority (QIA). The transaction values the business at EUR 7.7 billion.

BASF will retain a 40 % equity stake in the new company and expects a pre-tax cash inflow of around EUR 5.8 billion upon closing. Completion of the transaction is anticipated in the second quarter of 2026, subject to regulatory approval.

Carlyle to drive growth and standalone development

BASF Coatings generated EUR 3.8 billion in sales in 2024 and operates across Europe, the Americas, and Asia-Pacific. Carlyle plans to work closely with the management team, investing in innovation, commercial capabilities, and organisational development to enhance customer focus.

“We look forward to partnering with Carlyle, whose industry expertise and carve-out experience will position BASF Coatings for long-term success,” said Dr Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. Retaining an equity share demonstrates BASF’s confidence in the business’s future value creation.

According to Anup Kothari, BASF Executive Board member responsible for Coatings, the transaction “opens a new chapter full of opportunity and growth potential.”

Experienced investors and focus on continuity

Carlyle brings a proven track record in industrial and chemical carve-outs, with prior investments in Axalta, Atotech, and Nouryon. QIA CEO Mohammed Al-Sowaidi stated that the investment aligns with QIA’s strategy to support “leading industrial players with long-term resilience.”

BASF confirmed that business continuity and employee representation will be maintained throughout the process.

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