The German chemical concern BASF SE expects to attract large investment companies as part of the sale of the paint and varnish coatings business for 6 billion euros ($6.8 billion). This is reported in a press release from BASF.
Carlyle Group Inc. is considering the possibility of participating in the tender together with paint manufacturer Sherwin-Williams Co., while CVC Capital Partners Plc and Lone Star funds have also expressed interest in the deal. Advent, Bain Capital, Blackstone Inc. and Platinum Equity plan to evaluate the business themselves.
BASF has attracted Bank of America Corp. and JPMorgan Chase & Co. as consultants in the framework of the proposed sale of the coatings division, which had sales of 4.3 billion euros in 2024. The proposed transaction is aimed at identifying strategic options for other paint and varnish related activities.
The sale of the automotive paint and industrial coatings division is part of BASF's restructuring program, which has decided to focus on its core business areas given high energy prices and a sharp drop in demand, especially in China.
In February 2025, BASF signed an agreement to sell the Brazilian paint and varnish business to Sherwin-Williams for $1.15 billion and engaged consultants to prepare for a possible IPO of the agricultural chemicals division, which could cost more than 20 billion euros.
European companies tend to spin off or sell non-core assets in order to focus on increasing shareholder value. In particular, DSM-Firmenich AG is planning a potential sale of the animal feed business for 3 billion euros, and BP Plc has begun selling the lubricants business to Castrol, which has attracted interest from Reliance Industries Ltd., Apollo Global Management Inc. and Lone Star.
BASF is the largest chemical concern in Germany and Europe. The company includes six production segments — production of petrochemical products, operational materials, resins, catalysts and coatings, fertilizers. The headquarters is located in Ludwigshafen (Germany) with 234 manufacturing plants in 93 countries and a staff of 112 thousand people. The main sales market is Europe (37.8%), with North America accounting for 27.3% and Asia for 25.4%.
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