Thread Content
On October 10, 2025, BASF reached a binding agreement with funds affiliated with the global investment firm KKR (NASDAQ ticker: CG) and the Qatar Investment Authority (QIA) regarding BASF’s automotive original paint, automotive repair paint, and surface treatment businesses (hereinafter referred to as “BASF Paints”). The enterprise value of this deal is 7.7 billion euros. Subject to obtaining the usual regulatory approvals, the transaction is expected to be finalized in the second quarter of 2026. Including this transaction along with the previously completed separation of the decorative coatings business, the valuation of BASF’s entire coatings business unit is estimated to be 8.7 billion euros, corresponding to a enterprise value multiple of around 13 times (that is, the enterprise value divided by earnings before interest, taxes, depreciation, and amortization for 2024, excluding any special items). As BASF swiftly implements its \"Winning by Doing\" corporate strategy, this deal marks an important step forward in unlocking the value of its \"self-sustaining businesses\". BASF will continue to invest, holding a 40% stake in the coatings business, and will receive approximately 5.8 billion euros in pre-tax cash proceeds upon completion of the transaction. As an expert in developing, producing, and selling innovative, sustainable coatings worldwide, BASF Coatings continues to provide the industry with advanced solutions, including original automotive paint coatings, automotive repair paints, as well as surface treatment products for metal, plastic, and glass substrates used in various industries. This business operates in Europe, North America, South America, and the Asia-Pacific region, with sales amounting to approximately 3.8 billion euros in 2024. Kearney will work closely with BASF’s management team to further strengthen a customer-oriented approach through continuous investment in business operational capabilities, innovation initiatives, and organizational structure, thereby supporting the future development of BASF’s coatings business. Following its investments in Axalta, Atotech, and Nouryon, KKR will leverage its extensive experience and successful track record in industrial and chemical asset spin-off transactions to further empower industry leaders. Markus Kamieth, Chairman of the Executive Board of the BASF Group, said: “We are pleased to partner with KKR. Its industry expertise, ability to structure businesses, and approach to collaboration will help ensure the long-term success of BASF Coatings.” By retaining equity, we demonstrate our confidence in the future value creation and growth potential of the coatings business. The enthusiasm, professional expertise, and customer-centric approach of the coating business team are the key factors that set this business apart. ”Anup Kothari, member of the Executive Board of the BASF Group and head of the Coatings business unit, said: “The deal announced today opens a new chapter of opportunities for BASF Coatings.” It is built on the achievements we have made so far, and it will also help us shape a stronger future. ”Martin Sumner, head of Carlyle’s Global Industrial business, and Carlyle partner Tanaka Maswoswe said, “BASF Coatings is an excellent platform, boasting cutting-edge technology, a world-class management team, strong customer relationships, and a truly global business structure.” We see tremendous potential for growth in this, as by making full use of Carlyle’s global platform resources, we can help it develop into a leading independent coatings company in the industry. This transaction fully demonstrates KKR’s outstanding ability to carry out complex spin-off transactions in partnership with global leading companies. ”Mohammed Al-Sowaidi, CEO of the Qatar Investment Authority, said: “We are pleased to partner with KKR to help BASF Coatings enter the next stage of growth.” This investment is in line with QIA’s strategy of investing in industry leaders, and it also reflects our strong confidence in the long-term resilience and growth potential of German companies. ”Throughout the entire transaction process, continuous customer service will be ensured. In accordance with legal requirements and local practices, employee representatives will also participate in the relevant processes.