German chemical giant BASF SE has officially kicked off the sale process for its coatings business, with the unit expected to fetch up to €6bn ($6.8bn), drawing attention from a growing roster of global buyout firms including Carlyle Group, according to a report by Bloomberg.
The reports cites unnamed sources familiar with the matter, as revealing that while the process — advised by Bank of America and JPMorgan — is still in early stages, a host of potential bidders have emerged, among them CVC Capital Partners, Lone Star Funds, Advent International, Bain Capital, Blackstone, and Platinum Equity.
Carlyle is said to be exploring a joint bid with Sherwin-Williams, which has already acquired BASF’s Brazilian paints business for $1.15bn earlier this year. That deal, alongside this potential transaction, signals the company’s intention to fully exit its coatings operations.
The BASF coatings division generated €4.3bn in revenues in 2024, positioning it as a sizeable standalone platform play for private equity suitors seeking scale and global exposure. The unit offers a mix of automotive, industrial and decorative coatings — segments that could provide growth opportunities through operational optimisation and bolt-on M&A.
“We are approaching the market to explore strategic options for the remaining coatings activities,” a BASF spokesperson confirmed. “There is high interest from both strategic and private equity buyers, and discussions are ongoing.”
The BASF transaction follows a series of large-scale disposals in Europe’s industrial sector. DSM-Firmenich is eyeing a sale of its €3bn animal nutrition business, while BP is marketing its Castrol lubricants arm, which has attracted bids from Apollo Global and Lone Star, among others.
Should the BASF coatings deal proceed at the rumoured €6bn valuation, it would mark one of the year’s largest European buyouts in the industrials space.
