According to a recent report from Bloomberg News, BASF SE is reaching out to potential buyers regarding selling its coatings business. The Bloomberg News report says that BASF has set a valuation of approximately €6 billion ($6.81 billion).
BASF reported sales of $4.7 billion in 2023, making it the seventh largest international paint and coatings company in Coatings World’s top companies listing. Its key markets are automotive OEM and refinishing coatings.
The potential buyers identified by Bloomberg News include Carlyle Group and Sherwin-Williams, who reportedly are considering combining their efforts on a bid for BASF’s coatings unit. Bloomberg added that there has been early interest from CVC Capital Partners and Lone Star Funds, with other private equity firms also interested.
“We are approaching the market to explore strategic options for the remaining coatings activities,” a BASF spokesperson told Bloomberg News.
Back in September 26, 2024, Dr. Markus Kamieth, chairman of the Board of Executive Directors for BASF, spoke at BASF Capital Markets Day, offering these comments:
“We are convinced that BASF is at a turning point. It’s a real moment of truth for this incredible company. Over the last years in particular, we are aware that the value creation for our shareholders has not met expectations, certainly not the expectations of our shareholders, nor our own expectations. And this is why we came to the conclusion that our strategic direction for BASF needed rethinking.
“Coatings is a great business that is leading in its respective market, very much focused on the coating side in the automotive markets. It is also a world leader in surface treatment for all kinds of applications, including aerospace. Now, going forward, we will explore strategic options for our Coatings business. Because we believe there is a plausible pathway towards generating a premium value by, for example, exploring partnership options or even different ownership structures. We will also immediately start the divestment process of BASF’s only sizeable B2C business, which is the decorative coatings business in Brazil with the Suvinil brand.”
BASF subsequently sold its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion on Feb. 17, 2025, with the sale expected to close in the second half of 2025.
“The signing marks an important step in unlocking the value of our standalone businesses, and I am delighted that we have made such rapid progress in finding a new home for Suvinil,” said Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division. “We are convinced that the decorative paints business will continue to thrive as part of Sherwin-Williams.”