en.Wedoany.com Reported - The coatings business transaction between BASF and Carlyle, announced on October 10, 2025, has received all necessary regulatory approvals and was formally completed on June 30, 2026.
The transaction is valued at €7.7 billion, underscoring BASF's corporate strategy to unlock the value of its "standalone businesses"
On June 30, 2026, BASF received approximately €5.8 billion in pre-tax cash proceeds. Upon completion of the transaction, BASF holds a 40% stake in the new company, Switu (formerly BASF's coatings business).
The company's business encompasses automotive OEM coatings, automotive refinish coatings, and surface treatment operations. Together with the decorative paints business, which was divested in October 2025, this transaction values the former BASF Coatings division at a total of €8.7 billion, corresponding to an enterprise value multiple of approximately 13 times (i.e., enterprise value divided by 2024 EBITDA excluding special items).
Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, stated: "The successful completion of this transaction marks a significant milestone in the implementation of our 'Winning Ways' corporate strategy, which includes unlocking the value of our 'standalone businesses.' By retaining a 40% stake, we will continue to participate in the future value creation of the coatings business while further sharpening BASF's strategic focus."
Since September 30, 2025, BASF has reported the coatings business as discontinued operations. Retroactively effective from January 1, 2025, the after-tax earnings of the coatings business have been presented separately within BASF Group's after-tax earnings ("After-tax earnings from discontinued operations"), with prior-year figures restated accordingly.
The disposal gain resulting from this transaction, completed on June 30, 2026, will also be included in "After-tax earnings from discontinued operations" and will therefore be reflected in BASF Group's net income and earnings per share. As of the end of 2025, the net book value of the coatings disposal group was approximately €3.0 billion. Starting from July 2026, BASF's 40% stake in the new company will be accounted for as an equity investment using the equity method, with the corresponding share of net income reported under "Other" in EBITDA excluding special items.
