German chemicals giant BASF SE has advanced to the next stage in the sale of its €6bn coatings division, inviting shortlisted bidders to submit second-round offers in August, according to a report by Bloomberg citing sources familiar with the matter.
Private equity firms Carlyle, KPS Capital Partners, Lone Star Funds and Platinum Equity have been selected to move forward in the process, alongside Akzo Nobel – the sole strategic bidder still in contention.
The unit generated approximately €4.3bn in revenue in 2024.
While discussions remain ongoing, sources cautioned that final offers are not guaranteed, and BASF may ultimately decide to retain the asset longer-term. BASF, Akzo Nobel, and the private equity firms involved declined to comment.
The coatings sale forms part of a broader corporate realignment under CEO Markus Kamieth, who took the helm last year amid mounting cost pressures and softening demand – particularly in China. Earlier this month, the Frankfurt-listed group issued a profit warning, citing macroeconomic headwinds, geopolitical tensions, and elevated energy costs.
BASF has already begun reshaping its portfolio. In February, it agreed to divest its Brazilian paint operations to Sherwin-Williams for $1.15bn and is reportedly preparing a potential IPO of its agriculture chemicals unit, which could be valued in excess of €20bn.
Bank of America and JPMorgan are advising BASF on the coatings unit sale, which launched earlier this year with information memoranda sent to potential suitors.
