BASF has formally launched the sale of its coatings division, a business expected to fetch up to €6bn ($6.8bn), according to Bloomberg.

The process, led by Bank of America and JPMorgan, is in its early stages, but several major private equity firms are already circling.

Potential bidders reportedly include Carlyle Group, CVC Capital Partners, Lone Star Funds, Advent International, Bain Capital, Blackstone, and Platinum Equity. Carlyle is said to be exploring a joint offer with Sherwin-Williams, which acquired BASF’s Brazilian paints unit for $1.15bn earlier this year.

BASF’s coatings business generated €4.3bn in revenue in 2024, positioning it as an attractive standalone platform for private equity investors seeking scale and global exposure. The unit’s diverse portfolio spans automotive, industrial, and decorative coatings, offering significant opportunities for growth through operational improvements and bolt-on acquisitions.

A BASF spokesperson confirmed the process, noting that “there is high interest from both strategic and private equity buyers, and discussions are ongoing.”

The sale follows a broader trend of large industrial divestments in Europe, with DSM-Firmenich seeking to sell its €3bn animal nutrition unit and BP marketing its Castrol lubricants arm, which has attracted bids from Apollo Global and Lone Star, among others.

If BASF’s coatings sale reaches the speculated €6bn valuation, it would rank among the largest European industrial buyouts of the year.

Source: Bloomberg

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