Carlyle rumored to buy BASF’s €7B coating business, final decision expected in Q4
Key takeaways
- Carlyle is rumored to acquire BASF's €7 billion (US$8.1 billion) coatings business, with a final decision expected by Q4 2025.
- The sale is speculated to be driven by rising energy costs in Europe, with BASF focusing on strategic portfolio restructuring.
- BASF's Winning Ways strategy aims to steer the company towards disciplined capital allocation and profitable growth by 2028.
The German chemicals giant BASF is planning to sell its €7 billion (US$8.1 billion) coatings business to the US investment firm Carlyle, the Financial Times has reported. BASF tells Packaging Insights that it “approached the market in Q2 this year to explore strategic options for the coatings activities” and that a “decision is expected in Q4 2025.”
Regarding BASF coatings’ rumored sale, the company spokesperson says: “It is our company’s policy not to comment on market rumors or speculation. We have previously communicated our position regarding automotive original equipment manufacturer coatings, automotive refinish coatings, and surface treatment activities.”
BASF put up its coating business for sale at the beginning of the year. The coatings division employs 10,300 people.
Also in the coatings division, this month, BASF finalized the sale of a Brazilian decorative paints business to Sherwin-Williams for a purchase price of US$1.15 billion on a cash and debt-free basis.
“Winning Ways”
The spokesperson highlights that BASF presented its Winning Ways strategy in 2024 and an update on the implementation of the strategy last week.
The stated aim of Winning Ways is to steer BASF’s portfolio, capital allocation, and performance culture in a new direction.
Dr. Dirk Elvermann, chief financial officer at BASF, says: “We will put an even higher focus on cash. We will strengthen capital discipline with lower capital expenditures and continue our cost savings programs.”
The updated dividend policy is underpinned by the following new financial targets of BASF:
- EBITDA before special items is expected to be €10 billion (US$11.6 billion) to €12 billion (US$13.9 billion) in 2028 in mid to upcycle conditions
- The targeted return on capital employed (ROCE) for 2028 is around 10%.
In last week’s update, BASF confirmed it is taking a “disciplined approach to capital allocation.”
Dr. Markus Kamieth, chairman of the Board of Executive Directors of BASF SE, says: “Our focus on portfolio steering, capital allocation, and performance culture will position BASF well for future profitable growth.”
Packaging Insights will continue to cover this developing story.
