BASF finalized its €7.7 billion coatings transaction with Carlyle, retaining a 40% stake in Surventis while sharpening strategic focus and unlocking value.
BASF and global investment firm Carlyle have officially completed their previously announced coatings business transaction, marking a significant milestone in BASF’s ongoing portfolio transformation strategy. Originally announced on October 10, 2025, the transaction reached completion on June 30, 2026, after receiving all necessary regulatory clearances from the relevant authorities. The deal carries an enterprise value of approximately €7.7 billion, representing one of BASF’s most significant strategic divestments in recent years.
As part of the completed transaction, BASF received approximately €5.8 billion in pre-tax cash proceeds on June 30, 2026. Rather than exiting the coatings business entirely, BASF has retained a 40% equity interest in the newly established independent company, Surventis, formerly known as BASF Coatings. Surventis now comprises BASF’s former automotive original equipment manufacturer (OEM) coatings, automotive refinish coatings, and surface treatment businesses. Through this retained ownership, BASF will continue to participate in the future financial performance and value creation of the coatings operations while allowing the business to operate independently under its new corporate structure.
The completion of this transaction, together with the earlier divestiture of BASF’s decorative paints business in October 2025, places the total enterprise value of BASF’s former Coatings division at approximately €8.7 billion. The valuation also reflects an implied 2024 enterprise value-to-EBITDA multiple of around 13 times, before special items, demonstrating the strong market value and earnings potential of the coatings portfolio.
Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, described the successful completion as a major achievement in implementing the company’s Winning Ways strategy. He emphasized that the transaction supports BASF’s objective of unlocking greater value from standalone businesses while enabling the company to sharpen its strategic focus on its core operations. According to Kamieth, maintaining a 40% ownership stake allows BASF to benefit from Surventis’ future growth and profitability while simultaneously streamlining its own business portfolio.
Anup Kothari, Member of the Board of Executive Directors of BASF SE, also expressed confidence in the new ownership structure. He stated that the partnership between Carlyle and BASF provides a solid platform for Surventis to pursue long-term profitable growth as an independent company. Kothari further extended his best wishes to the employees transitioning from BASF Coatings to Surventis, expressing confidence in their future success and continued innovation under the new organizational framework.
From a financial reporting perspective, BASF has classified its coatings business as discontinued operations beginning with its financial reporting for the quarter ending September 30, 2025. Consequently, effective retroactively from January 1, 2025, the after-tax earnings generated by the coatings business have been presented separately within BASF Group’s consolidated income statement under the category “Income after taxes from discontinued operations.” Comparative financial results for prior reporting periods have also been adjusted to reflect this accounting treatment.
The gain generated from the disposal, resulting from the transaction’s completion on June 30, 2026, will likewise be recognized within the same discontinued operations category. As a result, the disposal gain will contribute directly to BASF Group’s reported net income and earnings per share. At the end of 2025, the book value of the net assets associated with the coatings disposal group stood at approximately €3.0 billion.
Looking ahead, beginning in July 2026, BASF’s retained 40% ownership stake in Surventis will be accounted for as a financial investment using the equity method. Under this accounting approach, BASF will recognize its proportional share of Surventis’ net earnings within EBITDA before special items under the "Other" segment. This structure enables BASF to maintain financial exposure to the coatings business while focusing greater resources on its strategic priorities, strengthening operational efficiency, and enhancing long-term shareholder value.
Impact on Products and Chemical Commodity Prices:
The completion of BASF's coatings transaction with Carlyle is expected to strengthen the long-term competitiveness of Surventis, enabling greater investment in automotive OEM coatings, refinish coatings, and surface treatment technologies. In the near term, however, the transaction is unlikely to disrupt production or supply, as manufacturing operations and customer commitments are expected to continue seamlessly under the new ownership structure. Consequently, there should be minimal immediate impact on the demand or availability of key raw materials.
For chemical commodities tracked by ChemAnalyst, including Epoxy Resins, Acrylic Acid, Butyl Acrylate, Ethyl Acrylate, Methyl Methacrylate (MMA), Titanium Dioxide (TiO2), Xylene, Toluene, Isocyanates (MDI and TDI), Propylene Glycol, Solvents, and Zinc Phosphate, prices are expected to remain largely stable in the short term. Over the medium to long term, if Surventis accelerates production expansion or increases coatings capacity under Carlyle's ownership, procurement of these feedstocks could rise, providing modest upward support to demand and prices, particularly for specialty coatings raw materials.
