BASF Signs $1.15 Billion Deal to Sell Brazilian Decorative Paints Business to Sherwin-Williams

BASF Signs $1.15 Billion Deal to Sell Brazilian Decorative Paints Business to Sherwin-Williams

(IN BRIEF) BASF has reached an agreement to sell its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion. This divestiture, which is part of BASF’s strategy to unlock value through active portfolio management, includes production sites, brands, and approximately 1,000 employees. The sale is expected to close in the second half of 2025, pending regulatory approvals.

(PRESS RELEASE) LUDWIGSHAFEN, 18-Feb-2025 — /EuropaWire/ — BASF and Sherwin-Williams have finalized an agreement for the sale of BASF’s Brazilian decorative paints business, a key division within its Coatings business. The transaction is valued at $1.15 billion, on a cash and debt-free basis. As part of the agreement, Sherwin-Williams will acquire production facilities in Demarchi and Jaboatão, the Suvinil and Glasu! brands, and approximately 1,000 employees. The deal, structured as a share transaction, is anticipated to be completed in the second half of 2025, subject to approval by relevant competition authorities.

This divestiture is an important step in BASF’s ongoing efforts to optimize its portfolio as part of the company’s “Winning Ways” strategy. The Brazilian decorative paints business, which generated sales of about $525 million in 2024, represents BASF’s only significant business-to-consumer (B2C) operation in the coatings sector. The business offers a broad range of paints, paint preparation products, and digital solutions, operating primarily in Brazil with limited synergies to BASF’s other coatings businesses.

Anup Kothari, member of the Board of Executive Directors of BASF SE and head of the Coatings division, expressed his satisfaction with the progress of the deal, stating, “This sale marks a significant milestone in unlocking value from our standalone businesses. We are pleased to have found a great partner for Suvinil, and we are confident that the business will continue to thrive as part of Sherwin-Williams. Our heartfelt thanks go to the dedicated employees who have made Suvinil Brazil’s most recognized decorative paint brand.”

Sherwin-Williams CEO, Heidi G. Petz, highlighted the strategic fit of the acquisition, saying, “Suvinil has been synonymous with innovation and quality in Latin America for over six decades. The brand is highly trusted by key industry players, and its addition will complement Sherwin-Williams’ existing operations in the region. We look forward to leveraging the strengths of both companies to deliver even greater value to our customers.”

Both companies will remain independent until the transaction is finalized, ensuring business continuity for customers. Employee representatives from the decorative paints business will be involved in line with legal requirements and local practices.

Looking ahead, BASF intends to evaluate strategic options for its remaining Coatings activities, which include automotive OEM coatings, refinish coatings, and surface treatment, with an announcement expected in the second quarter of 2025.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.
Forward-looking statements and forecasts

This release contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.

Media Contacts:

Daniela Rechenberger
Corporate Media Relations
+49 621 60-41040
daniela.rechenberger@basf.com

Dr. Stefanie Wettber
Senior Vice President Investor Relations
+49 621 60-48002
stefanie.wettberg@basf.com

SOURCE: BASF