BASF begins the sale process of its coatings business, valued at approximately $6.8 billion.

German chemical manufacturer BASF SE has recently distributed information to potential buyers regarding the sale of its coatings business, which is valued at approximately 6 billion euros, according to a report by Bloomberg News.

According to the report, Carlyle Group and paint manufacturer Sherwin-Williams are exploring a joint bid for BASF’s coatings unit. The business has also drawn preliminary interest from CVC Capital Partners and Lone Star Funds.

Private equity firms such as Advent, Bain Capital, Blackstone, and Platinum Equity are also independently planning to assess the potential acquisition of the business.

Earlier this month, BASF’s Chief Financial Officer stated that the company would be exploring market interest in its coatings division during the second quarter.

"We are engaging with the market to explore strategic options for our remaining coatings operations," a BASF spokesperson told Bloomberg News.

In December 2023, BASF revealed plans to transform its agriculture, battery materials, and coatings divisions into autonomous units as part of an effort to enhance profitability. The company had already granted greater independence to its catalytic converter business.

Carlyle Group, Sherwin-Williams, CVC Capital Partners, Lone Star Funds, Advent, Bain Capital, Blackstone, and Platinum Equity did not immediately respond to Reuters' requests for comment.

Source: Bloomberg