Ludwigshafen, Rhineland-Palatinate -- German chemical giant BASF is selling its coating business to the Washington D.C.-based private equity firm the Carlyle Group for €7.7 billion ($11.3 billion).
he agreement covers BASF’s automotive OEM coatings, refinish coatings and surface treatment operations. When the transaction closes—expected in the second quarter of 2026 pending regulatory approval—BASF will receive roughly €5.8 billion ($8.5 billion) in cash and retain a 40 percent stake in the new company.
Dr. Markus Kamieth (pictured right), chair of the board of executive directors at BASF SE, said the partnership will help the coatings business reach new heights.
“We are delighted to partner with Carlyle, whose sector expertise, carve-out capabilities and collaborative approach will help position BASF Coatings for long-term success,” he said.
“By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential," Kamieth added. "The passion, expertise and customer focus of our Coatings team is what makes this business outstanding.”
In a press release, Anup Kothari (pictured left), a member of the board of executive directors at BASF SE who is responsible for the coatings division, said the deal marks a turning point.
“The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future,” he said.
Carlyle leaders Martin Sumner, global head of industrials, and Tanaka Maswoswe, partner at Carlyle, praised the strength of the business and its leadership.
“BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships and a truly global footprint,” they said in a joint statement. “We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.”
Mohammed Al-Sowaidi, chief executive officer of the Qatar Investment Authority, which is partnering with Carlyle in the acquisition, called the deal a long-term strategic investment.
“QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth,” he said. “This investment aligns with QIA’s approach of investing in industry leaders and is testament to our belief in the long-term resilience of German businesses.”
BASF said business continuity for customers will be maintained during the transition, with employee representatives involved in accordance with local practice and legal requirements.
The transaction, one of the largest in the coatings sector in recent years, underscores growing investor interest in high-margin surface technologies tied to the automotive industry. If approved, it will reshape the competitive landscape for automotive paints and treatments worldwide.
