German chemical firm BASF has agreed to sell its automotive OEM coatings, automotive refining coatings, and surface treatment businesses to private investment major Carlyle, in partnership with the Qatar Investment Authority.
The enterprise value of the transaction amounts to €7.7bn. Subject to customary regulatory approvals, it is expected to close in Q2 2026. This deal, together with the already closed divestiture of the decorative paints business, value BASF’s entire Coatings division at an enterprise value of €8.7bn, with an implied 2024 EV/EBITDA multiple before special items of approximately 13x. BASF will also reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of approx. €5.8bn at closing of the transaction.
Working closely alongside management, Carlyle will support the future growth of the business through investing in its commercial capabilities, innovation pipeline, and organisational structure to enhance customer focus.
BASF operates in Europe, North America, South America and Asia Pacific, generating sales of approximately €3.8bn in 2024.
