€7.7 Billion: Carlyle Leads a Massive Buyout
Carlyle has made another bold move.
Recently, global chemical giant BASF announced a binding sale agreement with U.S. private equity titan Carlyle Group and Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA).
Under the deal, Carlyle and QIA will acquire a majority stake in BASF’s coatings business. The enterprise value of the transaction is €7.7 billion (approximately RMB 63.8 billion), marking one of the most significant asset divestitures in the global chemical industry in recent years.
BASF Retains 40% Stake, Carlyle Takes Operational Lead
Per the agreement, BASF’s automotive OEM coatings, refinish coatings, and surface treatment businesses are valued at €7.7 billion.
Upon completion, Carlyle and QIA will jointly hold 60% of the business, while BASF retains a 40% stake and will receive about €5.8 billion in pre-tax cash proceeds.
The transaction is expected to close in Q2 2026, pending standard regulatory approvals.
The deal corresponds to an enterprise value multiple of approximately 13x (enterprise value divided by 2024 EBITDA, excluding special items).
While BASF will no longer hold a controlling stake, it remains a significant shareholder and will participate in future growth. BASF also stated that the proceeds will fund an early stock buyback program of at least €4 billion, originally planned for 2027-2028.
Carlyle’s global industrial business head Martin Sumner and partner Tanaka Maswoswe said: “BASF’s coatings business is an exceptional platform with leading technology, a world-class management team, strong customer relationships, and a truly global footprint. We see tremendous growth potential, leveraging Carlyle’s global resources to position it as a leading independent coatings company. This deal showcases Carlyle’s ability to execute complex carve-out transactions with global industry leaders.”
Public records show BASF, founded in 1865 and headquartered in Ludwigshafen, Germany, is one of the world’s largest chemical companies. Its name derives from “Badische Anilin- und Soda-Fabrik” (Baden Aniline and Soda Factory), starting with synthetic dyes.
As of now, BASF employs ~112,000 people globally, with 2024 sales of €65.3 billion. Its core businesses include chemicals, materials, industrial solutions, and nutrition & care, while coatings and agriculture are classified as “autonomous business” units with independent operations and divestiture potential.
Spanning Four Continents, Total Valuation Hits €8.7 Billion
The coatings business is no marginal asset—it’s a core part of BASF’s “autonomous business” segment, generating ~€3.8 billion in sales in 2024.
BASF’s coatings unit holds a pivotal position in the global market, particularly in automotive OEM and refinish coatings, with leading technology and a solid customer base spanning four continents.
The business operates multiple R&D and production sites across Europe, North America, South America, and Asia-Pacific, with highly localized service capabilities.
Including the previously sold Brazilian decorative coatings business, BASF’s overall coatings division is valued at up to €8.7 billion.
Carlyle Group, a leading global private equity firm, manages $465 billion in assets as of June 2025. It has extensive experience in carve-outs and integrations in the global industrial and chemical sectors.