Toronto, Ontario -- BASF is in talks to sell its global coatings business to the U.S. private equity firm Carlyle.
Last week, the institutional investor emerged as the leading bidder in a deal reported by several sources to be valued at about €7 billion.
The sale would represent one of the largest industrial transactions in Germany this year and mark a decisive step in BASF’s ongoing effort to streamline its portfolio.
The coatings unit, which includes OEM finishes, refinish products, decorative paints and surface treatments, generated roughly €4.3 billion in sales last year—around 6.6 percent of BASF’s total revenue, a slight decline from 2023. The company first signaled its intent to divest the division in 2023 when it granted greater independence to its business units, positioning coatings as a candidate for sale.
By exiting the coatings segment, BASF aims to free capital, sharpen its focus on higher-growth areas such as battery materials, agricultural solutions and surface technologies, and reduce exposure to rising energy costs, volatile raw material markets and tightening European regulations.
Carlyle’s interest underscores the value of the coatings operation, which holds a strong position in automotive refinishing and OEM supply chains worldwide. While other financial and strategic buyers are believed to have explored bids, Carlyle is reportedly in advanced negotiations and could reach an agreement before the end of the year.
Neither company has commented publicly on the status of negotiations.
