Carlyle is reportedly considering the acquisition of BASF’s Coatings business for €7 billion.

The divestment has drawn interest from several global private equity bidders.

BASF is reportedly looking to sell its coatings business in a deal valued at approximately €7 billion ($8.17 billion), according to the Financial Times, which first noted that Carlyle had outbid other interested financial investors.

A BASF spokesperson stated that it is company policy not to comment on market rumours or speculation.

Earlier reports from Bloomberg News in May indicated that the business had attracted initial interest from CVC Capital Partners and Lone Star Funds, with private equity firms such as Advent, Bain Capital, Blackstone, and Platinum Equity also considering an evaluation of the business.

The BASF coatings division was put up for sale at the beginning of the year. The division, which employs over 10,300 people and primarily produces automotive coatings, generated sales of €3.8 billion in the previous year.

BASF began exploring strategic options for its remaining coatings activities in the second quarter, with a final decision expected in the last quarter of the year.

The company stated that proceeds from a potential divestiture of the business could allow for an earlier commencement of its previously announced share buyback program of at least €4 billion, planned for 2027–2028.

Source: Bloomberg