In context
In October 2025, the chemical and manufacturing sectors were witnessing strategic divestitures as companies sought to unlock value and focus on core operations. BASF's decision to carve out its Coatings division into a standalone entity, backed by private equity and sovereign wealth, reflected a broader trend of industrial conglomerates restructuring to enhance agility and shareholder returns.
What was reported
BASF signed a binding agreement with Carlyle and Qatar Investment Authority (QIA) to form a new standalone coatings company valued at €7.7 billion. The deal encompasses BASF's automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. Carlyle and QIA will take a majority stake, while BASF retains 40% equity.
The transaction is expected to close in Q2 2026, subject to regulatory approvals. BASF anticipates approximately €5.8 billion in pre-tax cash proceeds. Combined with the earlier decorative paints divestiture, the entire Coatings division is valued at €8.7 billion, implying a 2024 EV/EBITDA multiple of around 13x.
Carlyle plans to leverage its experience in complex carve-outs and prior investments in Axalta, Atotech, and Nouryon to accelerate growth. The business generated sales of about €3.8 billion in 2024 and operates globally across Europe, North America, South America, and Asia-Pacific.
Why it mattered
This transaction underscored the growing role of financial investors in the industrial coatings sector, potentially driving innovation and operational efficiency. For manufacturing automation, a more independent coatings company could lead to increased investment in advanced coating technologies and processes, benefiting downstream industries such as automotive and industrial manufacturing.
“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.”
Source: Robotics & Automation News (roboticsandautomationnews.com) · Published 2025-10-16 · “BASF and Carlyle to form €7.7 billion standalone coatings company with QIA investment”