BASF and Carlyle Successfully Complete Coatings Business Transaction

The coatings transaction between Carlyle and BASF, originally announced on October 10, 2025, was successfully completed on June 30, 2026, after securing all necessary regulatory approvals. The deal was valued at an enterprise value of €7.7 billion, with BASF receiving approximately €5.8 billion in pre-tax cash proceeds upon closing. Following the completion of the transaction, BASF retained a 40% equity stake in Surventis—formerly BASF Coatings—which includes the automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. Together with the divestiture of BASF's decorative paints business, completed in October 2025, the transactions value the company's former Coatings division at an enterprise value of €8.7 billion, which implies a 2024 EV/EBITDA multiple (before special items) of approximately 13x.

“This successful closing marks a key milestone in the execution of our Winning Ways strategy aimed at unlocking the value of our standalone businesses,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE. “By holding a 40 percent equity stake, we will continue to participate in the future value creation of the coatings business while sharpening BASF’s strategic focus.”

“We are convinced that the new ownership structure provides an excellent foundation for future profitable growth of Surventis,” said Anup Kothari, member of the Board of Executive Directors of BASF SE. “We wish the former BASF Coatings employees every success as they move forward into their future as an independent company.”

Beginning September 30, 2025, BASF classified its coatings business as discontinued operations. Accordingly, effective retrospectively from January 1, 2025, the business's after-tax earnings have been reported separately under "Income after taxes from discontinued operations" in the BASF Group's financial statements, with prior-year figures restated for comparability.

BASF has also recognised the gain from the disposal under discontinued operations, and it will therefore be reflected in the BASF Group's net income and earnings per share after the transaction is completed on June 30, 2026. At the end of 2025, the coatings disposal group reported net assets with a book value of approximately €3.0 billion.

From July 2026 onwards, BASF will account for its remaining 40% equity stake in Surventis as an equity-method investment. BASF will recognise its share of the company's net earnings within EBITDA before special items under the Other segment.

Source: BASF