BASF Closes €7.7 Billion Coatings Sale, Sharpens Focus

BASF Completes €7.7 Billion Coatings Divestment to Carlyle, Retains 40% Stake in Surventis 

Ludwigshafen, Germany — July 2, 2026 — BASF SE, one of the world's largest chemical producers and a key player in the global construction chemicals market, has completed the divestment of its coatings business to private equity firm Carlyle, in a transaction valued at €7.7 billion in enterprise value. The deal, closed on June 30, 2026, marks a pivotal step in BASF's portfolio realignment as the group sharpens its strategic focus on core chemistry operations. 

Main Development Section 

Following receipt of all required regulatory approvals, BASF received pre-tax cash proceeds of approximately €5.8 billion on June 30, 2026. The company now retains a 40 percent equity stake in the newly independent entity, named Surventis, comprising the automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. 

Together with the divestiture of the decorative paints business completed in October 2025, the transaction values BASF's former Coatings division at an enterprise value of €8.7 billion, implying a 2024 EV/EBITDA multiple before special items of approximately 13 times. 

The realignment carries relevance for the construction chemicals sector, where BASF remains an active participant alongside industry peers such as Sika AG, Saint-Gobain, and Arkema. 

Key Highlights: 

• The Carlyle transaction, first announced on October 10, 2025, closed on June 30, 2026, at an enterprise value of €7.7 billion. 

• BASF secured approximately €5.8 billion in pre-tax cash proceeds and retains a 40 percent equity stake in Surventis. 

• The disposal gain will be recognized under "Income after taxes from discontinued operations," reflected in BASF Group net income and earnings per share. 

• The retained stake will be accounted for as a financial investment using the equity method from July 2026. 

Analyst Insight: 

NMSC analysts note that the global construction chemicals market is projected to reach USD 93.49 billion by 2030, expanding at a CAGR of 6.9 percent from 2024 to 2030. Analysts at Next Move Strategy Consulting observe that portfolio streamlining among major diversified chemical producers, such as BASF, reflects a broader industry pivot toward higher-margin core segments amid persistent demand and raw-material cost pressures.

Industry Outlook: 

As leading producers recalibrate their portfolios, capital freed through divestments may be redirected toward strategic core segments, including construction chemistry, where infrastructure investment and urbanization continue to underpin structural demand. The completed transaction positions BASF to concentrate resources on its defined core businesses while maintaining participation in the coatings segment through its minority stake. 

Source: BASF

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Prepared By: Sanyukta Deb