BASF has signed a binding agreement with global investment firm Carlyle and Qatar Investment Authority (QIA) to create a new standalone coatings company valued at €7.7 billion.
The deal covers BASF’s automotive OEM coatings, automotive refinish coatings, and surface treatment businesses, collectively known as BASF Coatings. Under the agreement, Carlyle and QIA will take a majority stake, while BASF will retain a 40 percent equity stake in the new company.
The transaction is expected to close in the second quarter of 2026, subject to customary regulatory approvals. BASF says it will receive approximately €5.8 billion in pre-tax cash proceeds at closing.
Together with BASF’s earlier divestiture of its decorative paints business, the deal values the company’s entire Coatings division at €8.7 billion, representing an implied 2024 EV/EBITDA multiple before special items of around 13x.
BASF describes the move as a “significant step in unlocking the value of BASF’s standalone businesses” as part of its Winning Ways strategy.
Dr. Markus Kamieth, chairman of BASF SE, says: “We are delighted to partner with Carlyle, whose sector expertise, carve-out capabilities and collaborative approach will help position BASF Coatings for long-term success.
“By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential. The passion, expertise, and customer focus of our Coatings team is what makes this business outstanding.”
Anup Kothari, member of the board of executive directors of BASF SE and responsible for the Coatings division, says: “The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future.”
Carlyle says it will draw on its track record in managing complex carve-outs and its experience in the industrial and chemical sectors — including prior investments in Axalta, Atotech, and Nouryon — to accelerate the coatings company’s growth.
Martin Sumner, global head of industrials, and Tanaka Maswoswe, partner at Carlyle, says: “BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint.
“We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.”
Mohammed Al-Sowaidi, CEO of Qatar Investment Authority, says: “QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth.
“This investment aligns with QIA’s approach of investing in industry leaders and is testament to our belief in the long-term resilience of German businesses.”
BASF Coatings develops and markets automotive and industrial coatings, refinish systems, and surface treatments for metal, plastic, and glass substrates across multiple industries.
The business operates globally in Europe, North America, South America, and Asia-Pacific, and generated sales of approximately €3.8 billion in 2024.
Carlyle says it plans to invest in the business’s commercial capabilities, innovation pipeline, and organizational structure to enhance customer focus and operational efficiency.
BASF says “business continuity for customers will be ensured throughout the transaction process”, and that employee representatives will be involved “in accordance with legal requirements and local practice”.
Main image: NIO ES8 – Full aluminum car body with BASF Oxsilan thin film pretreatment, CathoGuard 800 e-coat, waterborne primer, waterborne basecoat and a two component clear coat. Courtesy of BASF SE
