BASF Seeks Binding Bids for Coatings Unit Amid Potential Sale

BASF has invited potential buyers to submit binding offers for its coatings business by next month, with several bidders reportedly progressing to the next round. The business could be valued at over 6 billion euros. Interested parties include Carlyle Group, KPS Capital Partners, Lone Star Funds, Platinum Equity, and Akzo Nobel. No decision has been made, and it is possible that the bidders may decide against an offer or that BASF may retain the business.

BASF SE has asked potential buyers to submit binding offers for its coatings business by August, following the shortlisting of bidders. The business is estimated to be worth at least €6 billion ($7 billion) [1].

The shortlisted bidders include private equity firms Carlyle Group Inc., KPS Capital Partners, Lone Star Funds, and Platinum Equity, as well as Dutch paint maker Akzo Nobel NV. Deliberations are ongoing, and the bidders could decide against submitting offers, or BASF could opt to keep the asset for longer [1].

Under the leadership of Chief Executive Officer Markus Kamieth, who took the reins last year, BASF is undergoing a strategic overhaul in response to high energy costs and tepid demand, particularly in China. The coatings divestment aligns with a broader effort to streamline operations and unlock value amid global economic headwinds and trade tensions [2].

The coatings division generated €4.3 billion in sales in 2024. This follows BASF’s February divestment of its Brazilian paint business to Sherwin-Williams for $1.15 billion [1].

Bank of America Corp. and JPMorgan Chase & Co. have been tapped to advise BASF on the sale of the coatings unit [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/basf-set-to-take-next-round-bids-for-coatings-arm-in-august
[2] https://www.globalcosmeticsnews.com/basf-advances-e6-billion-coatings-division-sale-with-second-round-bids-due-in-august/