BASF has signed an agreement to sell its Brazilian decorative paints business to Sherwin-Williams for a purchase price of $1.15 billion on a cash and debt-free basis. This transaction marks a significant milestone in BASF’s ongoing portfolio management strategy, as outlined in its “Winning Ways” approach.
Key Details of the Transaction:
In 2024, the decorative paints business generated sales of approximately $525 million and operates primarily in Brazil. It is BASF’s only sizable B2C business, with a broad portfolio of paints, paint preparation products, and digital solutions. The business has limited synergies with BASF’s other coatings divisions.
Statements from BASF and Sherwin-Williams:
Anup Kothari, Member of the Board of Executive Directors at BASF SE, expressed his satisfaction with the rapid progress in securing a new future for Suvinil, highlighting the company's success and the importance of this divestiture in unlocking value from standalone businesses.
Heidi G. Petz, Chair, President, and CEO of Sherwin-Williams, emphasized the complementary nature of the acquisition, noting Suvinil’s strong presence and reputation in the Latin American market. Sherwin-Williams looks forward to leveraging the combined strengths of both companies to create enhanced value for customers and employees.
Impact on Business and Employees:
BASF and Sherwin-Williams will continue to operate as independent entities until the transaction is finalized. The continuity of business operations for customers will be maintained throughout the process. Employee representatives will also be involved as per legal and local practices.
Future Plans:
Looking ahead, BASF intends to explore further strategic options for its remaining Coatings business, including automotive OEM coatings, refinish coatings, and surface treatment, in the second quarter of 2025.
Source: BASF
