BASF and Carlyle Agree on €7.7 Billion Coatings Business Deal

Transaction Overview

BASF and Carlyle, in partnership with Qatar Investment Authority, have agreed on a €7.7 billion transaction for BASF's automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. The deal is expected to close in Q2 2026, subject to customary regulatory approvals.

Financial Details

The transaction values BASF's entire Coatings division at €8.7 billion, with an implied 2024 EV/EBITDA multiple of approximately 13x before special items. BASF will retain a 40% equity stake in the coatings business and receive pre-tax cash proceeds of approximately €5.8 billion at closing.

Business Operations

BASF Coatings operates globally, with a presence in Europe, North America, South America, and Asia Pacific. In 2024, the business generated sales of approximately €3.8 billion, focusing on innovative and sustainable coatings and surface treatments for various substrates.

Future Growth

Carlyle plans to support the future growth of BASF Coatings by investing in its commercial capabilities, innovation pipeline, and organizational structure. The firm will leverage its experience in successful carve-outs of industrial and chemical assets to enhance customer focus and business development.