BASF and Carlyle have reached a binding agreement for the sale of BASF’s automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. The deal values these businesses at €7.7 billion. Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2026.
Carlyle, in partnership with Qatar Investment Authority (QIA), will acquire the majority stake in BASF Coatings. BASF will retain a 40% equity stake in the new standalone company and expects to receive approximately €5.8 billion in pre-tax cash proceeds at closing.
The transaction follows BASF’s recent divestiture of its decorative paints business, which together value the entire Coatings division at €8.7 billion with an implied 2024 EV/EBITDA multiple before special items of about 13 times.
BASF Coatings operates globally across Europe, North America, South America, and Asia Pacific, generating sales of around €3.8 billion in 2024.
Carlyle plans to work closely with management to invest in commercial capabilities, innovation pipeline, and organizational structure for future growth. The firm has previous experience with carve-outs in industrial and chemical sectors through investments such as Axalta, Atotech, and Nouryon.
Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE said: “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 responsible for the Coatings division added: “The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future.”
Martin Sumner, Global Head of Industrials at Carlyle along with Tanaka Maswoswe, Partner at Carlyle stated: “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 QIA commented: “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.”
Business continuity for customers will be maintained during the transition period according to legal requirements and local practices involving employee representatives.
A conference call regarding this transaction will be hosted by BASF on October 10 from 14:00 to 14:30 CEST; further details can be found at http://basf.com/conference-call-2025-10-10.
BASF employs about 112,000 people worldwide across various segments including Chemicals, Materials, Industrial Solutions as well as Surface Technologies—where its standalone businesses like coatings are bundled—and generated sales totaling €65.3 billion in 2024.
Carlyle manages $465 billion worth of assets as reported on June 30th 2025 through its private equity activities globally.
Qatar Investment Authority remains one of the largest sovereign wealth funds worldwide since its founding in 2005.
