Article Summary
BASF completed a €7.7 billion coatings transaction with Carlyle on June 30, 2026, receiving €5.8 billion in cash proceeds while retaining a 40% equity stake in the newly independent Surventis company, formerly BASF Coatings.
- Transaction Value: €7.7 billion completed on June 30, 2026, with BASF receiving €5.8 billion in pre-tax cash proceeds
- Equity Stake: BASF holds 40% ownership in Surventis, the former BASF Coatings division including automotive OEM and refinish coatings businesses
- Enterprise Valuation: Combined with the decorative paints divestiture, the coatings business valued at €8.7 billion with a 13x 2024 EV/EBITDA multiple
- Strategic Focus: Transaction aligns with BASF's Winning Ways strategy to unlock value and sharpen focus on core standalone businesses
- Accounting Treatment: BASF's 40% stake accounted for as a financial investment using the equity method starting July 2026
The €7.7 billion coatings transaction between global investment firm Carlyle and chemical company BASF was completed on June 30, 2026, after all necessary regulatory approvals were obtained.
First announced on October 10, 2025, the transaction received by BASF on Tuesday gave the company approximately €5.8 billion pre-tax cash proceeds. BASF now holds a 40% equity stake in Surventis, the company which was formerly BASF Coatings, including its automotive OEM coatings, automotive refinish coatings and surface treatment businesses.
“This successful closing marks a key milestone in the execution of our Winning Ways strategy aimed at unlocking the value of our standalone businesses,” said Dr. Markus Kamieth, BASF SE board of executive directors chairman, in the press release. “By holding a 40% equity stake, we will continue to participate in the future value creation of the coatings business while sharpening BASF’s strategic focus.”
In combination with the divestiture of the decorative paints business, which closed in October 2025, this transaction puts BASF’s former coatings division at an enterprise value of €8.7 billion and an implied 2024 EV/EBITDA multiple before special items of approximately 13x, the press release stated.
“We are convinced that the new ownership structure provides an excellent foundation for future profitable growth of Surventis,” said Anup Kothari, BASF SE board of executive directors member, in the press release. “We wish the former BASF Coatings employees every success as they move forward into their future as an independent company.”
The coatings business’s operations have been discontinued since September 30, 2025, according to reports from BASF. “Retroactively to January 1, 2025, the income after taxes of the coatings business was presented in the income after taxes of BASF Group as a separate item, titled ‘income after taxes from discontinued operations,’” stated the press release.
Prior-year figures were restated, and the disposal gain from the transaction is recognized in income after taxes from discontinued operations, which will be reflected in net income and earnings per share of BASF Group, confirmed BASF’s press release.
The book value of the coatings disposal group's net assets was approximately €3.0 billion at the end of 2025. BASF’s 40% equity stake in the new company will be accounted for as a financial investment using the equity method as of July 2026, and its share in net income of the financial participation will be reported before special items in Other in EBITDA.
