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BASF Wraps Up EUR 7.7B Coatings Sale to Carlyle, Holds 40% Interest
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Key Takeaways
BASFY's coatings business sale, first announced in October 2025, officially closed on June 30, 2026.
BASFY received about EUR 5.8B in pre-tax cash and retained a 40% stake in the newly formed Surventis.
The divestiture is part of BASF's Winning Ways strategy, and the gain will boost its net income.
BASF SE (BASFY - Free Report) recently announced the successful completion of the sale of its coatings business to global investment firm Carlyle, marking a major milestone in the company's portfolio transformation strategy. The transaction, originally announced in October 2025, closed on June 30, 2026, after receiving all required regulatory approvals.
The transaction values the coatings business at an enterprise value of €7.7 billion. Upon closing, BASFY received about €5.8 billion in pre-tax cash proceeds while retaining a 40% ownership stake in Surventis, the new company created from its former coatings business. Surventis includes BASFY's automotive OEM coatings, automotive refinish coatings and surface treatment operations.
The transaction, together with BASFY's earlier divestiture of its decorative paints business, completed in October 2025, values the company's former Coatings division at an enterprise value of €8.7 billion, representing an implied 2024 EV/EBITDA of approximately 13X before special items. The transaction supports its "Winning Ways" strategy, which is focused on unlocking value from standalone businesses while sharpening the company's strategic focus.
Per BASF SE, the successful closing represents a key milestone in the execution of the company's strategy. It noted that retaining a 40% ownership interest enables BASFY to continue participating in the coatings business' future value creation while allowing the company to focus more closely on its core operations.
The company stated that the gain from the divestiture will be recognized under "Income after taxes from discontinued operations," boosting BASFY Group's net income and earnings per share. The coatings business has been classified as a discontinued operation since Sept. 30, 2025, while BASFY's retained 40% stake in Surventis will be accounted for under the equity method starting in July 2026.
Shares of BASFY have risen 12.8% over the past year compared with the industry’s 0.2% growth.
The Zacks Consensus Estimate for CSW’s current-year earnings is pegged at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%.
View the Zacks #1 Rank List
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BASF Wraps Up EUR 7.7B Coatings Sale to Carlyle, Holds 40% Interest
Key Takeaways
BASF SE (BASFY - Free Report) recently announced the successful completion of the sale of its coatings business to global investment firm Carlyle, marking a major milestone in the company's portfolio transformation strategy. The transaction, originally announced in October 2025, closed on June 30, 2026, after receiving all required regulatory approvals.
The transaction values the coatings business at an enterprise value of €7.7 billion. Upon closing, BASFY received about €5.8 billion in pre-tax cash proceeds while retaining a 40% ownership stake in Surventis, the new company created from its former coatings business. Surventis includes BASFY's automotive OEM coatings, automotive refinish coatings and surface treatment operations.
The transaction, together with BASFY's earlier divestiture of its decorative paints business, completed in October 2025, values the company's former Coatings division at an enterprise value of €8.7 billion, representing an implied 2024 EV/EBITDA of approximately 13X before special items. The transaction supports its "Winning Ways" strategy, which is focused on unlocking value from standalone businesses while sharpening the company's strategic focus.
Per BASF SE, the successful closing represents a key milestone in the execution of the company's strategy. It noted that retaining a 40% ownership interest enables BASFY to continue participating in the coatings business' future value creation while allowing the company to focus more closely on its core operations.
The company stated that the gain from the divestiture will be recognized under "Income after taxes from discontinued operations," boosting BASFY Group's net income and earnings per share. The coatings business has been classified as a discontinued operation since Sept. 30, 2025, while BASFY's retained 40% stake in Surventis will be accounted for under the equity method starting in July 2026.
Shares of BASFY have risen 12.8% over the past year compared with the industry’s 0.2% growth.
BASFY’s Zacks Rank & Key Picks
BASFY carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , L.B. Foster Company (FSTR - Free Report) and Albemarle Corporation (ALB - Free Report) . CSW, FSTR and ALB carry a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings is pegged at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%.