Carlyle Emerges as Frontrunner in BASF Coatings Acquisition

Private equity firm Carlyle is leading the race to acquire the coatings business of German chemicals manufacturer BASF, according to a source familiar with the matter who spoke to Reuters on Monday.

BASF is seeking to divest the business in a transaction valuing it at approximately R144 billion, according to the Financial Times, which first reported that Carlyle had outbid other financial investors that had expressed interest.

A spokesperson for BASF stated it was company policy not to comment on market rumours or speculation.

Bloomberg News reported in May that the business had attracted early interest from CVC Capital Partners and Lone Star Funds, whilst private equity firms including Advent, Bain Capital, Blackstone and Platinum Equity were also planning to evaluate the business.

The BASF coatings division was put up for sale at the beginning of the year. The business, which employs more than 10,300 staff and primarily manufactures automotive coatings, generated sales of R78.2 billion last year.

BASF began approaching the market in the second quarter to explore strategic options for its remaining coatings activities, with a decision anticipated in the final quarter of the year.