BASF sells coatings unit for €7.7 billion, retains 40% stake

BASF completed the €7.7 billion sale of its coatings business to Carlyle on June 30, retaining a 40% stake in the newly formed Surventis as the German chemical giant sharpens its focus on core operations.

"The successful closing represents a key milestone in the execution of our Winning Ways strategy," said Dr. Martin Brudermüller, chairman of the executive board at BASF Group. "Retaining a 40% ownership interest enables us to continue participating in the coatings business' future value creation."

BASF received about €5.8 billion in pre-tax cash proceeds at closing. Combined with the October 2025 sale of its decorative paints business, the company's former coatings division commanded an enterprise value of €8.7 billion, implying a multiple of roughly 13 times 2024 earnings before interest, taxes, depreciation and amortization excluding special items. Surventis encompasses BASF's automotive OEM coatings, automotive refinish coatings and surface treatment operations.

The transaction unlocks significant shareholder value while allowing BASF to retain upside exposure through its minority stake. The gain will be recognized under income from discontinued operations, boosting group net income and earnings per share. BASF will account for its 40% holding in Surventis under the equity method starting this month.

The coatings sector has seen heightened deal activity. Covestro on July 1 completed the acquisition of two HDI derivative plants from former Vencorex in Thailand and the US, expanding its polyurethane supply chain for high-end coatings and adhesives — a market Surventis will also compete in.

For Carlyle, the acquisition represents one of its largest investments in specialty chemicals, giving the private equity firm control of a business with deep relationships across automotive and industrial end markets. BASF, meanwhile, will redirect resources toward its core strategic sectors under the Winning Ways program. The €5.8 billion cash infusion gives the company flexibility for share buybacks, debt reduction or further investments in its remaining businesses.

This article is for informational purposes only and does not constitute investment advice.