BASF Coatings secures £6.7bn investment from BASF and Carlyle
BASF and global investment firm Carlyle are investing £6.7bn in BASF Coatings, BASF’s standalone coatings, refinish and surface treatment businesses.
Subject to regulatory approval, the transaction is expected to be completed in the second quarter of next year.
BASF will also reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of around £5.05bn at closing of the transaction.
Meanwhile, Carlyle, in partnership with Qatar Investment Authority, will support the future growth of the business through investing in its commercial capabilities, innovation pipeline, and organisational structure to enhance customer focus.
BASF Coatings is a global player in the development, production and marketing of innovative and sustainable automotive OEM and refinish coatings as well as applied surface treatments for metal, plastic and glass substrates in a wide range of industries. The business operates in Europe, North America, South America and Asia Pacific, and generated sales of approx. €3.8 billion in 2024.
Collaborative approach
Dr Markus Kamieth, chairman of the board of executive directors of BASF SE, said: “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.
“By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential. The passion, expertise, and customer focus of our Coatings team is what makes this business outstanding.”
Martin Sumner, global head of industrials, and Tanaka Maswoswe, partner at Carlyle, said: “BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint.
“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, CEO of QIA, said: “QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth. 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.”
