Carlyle Group to Buy Majority Stake in BASF Coatings Unit for $8.9 Billion
Deal with Qatar Investment Authority expands the private equity firm's industrial holdings, valuing the automotive coatings business at €7.7 billion.
The Carlyle Group (NASDAQ: CG) has entered into a major agreement to acquire a majority stake in BASF's specialized coatings division, a move that significantly deepens its presence in the industrial sector. The transaction, conducted in partnership with the Qatar Investment Authority (QIA), values the coatings business at an enterprise value of €7.7 billion ($8.9 billion).
Under the terms of the deal, global chemical giant BASF will retain a 40% equity stake in the unit, which is a leading supplier of automotive OEM coatings, automotive refinish products, and surface treatments. BASF is expected to receive approximately upon the deal's completion, which is anticipated in the second quarter of 2026, pending customary regulatory approvals.
The acquisition marks a substantial deployment of capital for Carlyle, signaling a bullish outlook on the automotive and industrial manufacturing industries. The firm stated its intention to support the future growth of the coatings business by . The BASF unit is a significant player in its market, generating approximately €3.8 billion in sales in 2024.
For BASF, the divestment is a key part of a broader corporate strategy to streamline its portfolio and concentrate on businesses that are more deeply integrated with its core chemical production and Verbund sites. The sale allows BASF to realize significant value from its coatings division while still participating in its future success through its retained minority stake.
This transaction is one of the largest private equity buyouts in the chemicals sector in recent years, highlighting the continued interest of financial sponsors in high-quality industrial assets with stable cash flows and potential for operational improvements. The partnership between a major US private equity firm and a sovereign wealth fund like QIA underscores the global nature of large-cap dealmaking. Investors will be watching closely as Carlyle works to unlock further value from the ahead of the expected 2026 closing.