Toronto, Ontario -- German chemical manufacturer BASF is looking to sell its coatings business for about €6 billion ($9.36 billion).
BASF's Coatings division specializes in automotive OEM and refinish coatings, decorative paints and surface treatments. In 2024, the division generated approximately €4.3 billion ($6.32 billion) in revenue, a slight decrease from €4.4 billion ($6.47 billion) in 2023. This revenue accounted for about 6.6 percent of BASF’s total sales in 2024.
The move is part of a broader strategic shift toward other areas of the business meant to boost productivity and operational efficiency. It comes 18 months after the company moved to increase the independence of several of its business units, including its agriculture, battery materials and coatings wings. In December 2023, the company reported this would make the units more agile, accountable and better positioned to meet market demands independently.
By selling the coatings business, BASF is expected to free up capital and allow its management to focus to investing more heavily in other areas of the business. Additionally, BASF’s move comes in the context of a broader industry trend where large chemical companies are simplifying their portfolios, shedding non-core assets to improve financial performance and shareholder value.
According to various reports, the Carlyle Group, which is owned by Axalta, and Sherwin-Williams have been approached by the German company. Several institutional investment funds are also believed to be considering making an acquisition offer.
