Toronto, Ontario -- Second-round bids are expected in August for the coatings division of BASF, as the company moves ahead with a planned divestment valued at up to €6 billion (approximately US$6.5 billion).
The coatings unit, which includes automotive refinish and OEM coatings, industrial coatings and decorative paints, generated €4.3 billion in revenue last year. Prospective buyers are expected to submit binding offers after reviewing the unit’s operations and financials over the coming weeks.
BASF initiated the sale earlier this year as part of a broader strategy to streamline its portfolio. The move comes amid ongoing pressure from weak global demand, high energy costs and a company-wide push to refocus on core growth areas. The coatings division, while profitable, is considered non-core to BASF’s long-term strategy under its new CEO.
Several private equity firms are in the running, including Carlyle Group, KPS Capital Partners, Lone Star Funds and Platinum Equity. AkzoNobel — a strategic industry buyer — is also reportedly participating in the bidding process. The company has retained JPMorgan and Bank of America to advise on the deal.
A final decision has not yet been made, and BASF may still opt to keep the business if valuations or offers fall short of expectations.
