10:30 AM EDT, 10/10/2025 (MT Newswires) -- Carlyle Group ( CG ) agreed to acquire German chemical producer BASF's coatings business in partnership with Qatar Investment Authority for about 7.7 billion euros ($8.91 billion).

The transaction includes BASF's automotive original equipment manufacturer coatings, automotive refinish coatings and surface treatment businesses, the companies and the sovereign wealth fund said in a joint statement on Friday. The coatings business, which operates in North America, Europe, South America and Asia Pacific, generated sales of about 3.8 billion euros in 2024.

Private equity firm Carlyle's shares rose 0.6% in Friday trade.

"We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader," Carlyle Global Head of Industrials Martin Sumner and Partner Tanaka Maswoswe said in the statement. "This transaction exemplifies Carlyle's ability to execute complex carve-outs in partnership with leading global corporates."

The deal, which requires approval from regulators, is expected to complete in the second quarter of 2026. BASF plans to reinvest and hold a 40% stake in the coatings business, and will receive pretax cash proceeds of around 5.8 billion euros once the transaction completes.

"We are delighted to partner with Carlyle, whose sector expertise, carve-out capabilities and collaborative approach will help position BASF coatings for long-term success," BASF Chairman Markus Kamieth said. "By retaining an equity stake, we are showing our belief in coatings' future value creation and upside potential."

The transaction, along with the previously completed sale of BASF's Brazilian decorative paints business to Sherwin-Williams (SHW), gives the chemical producer's entire coatings division an enterprise value of 8.7 billion euros, according to the statement.

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