US$1.15 Billion! BASF Sells Brazilian Decorative Coatings Business
The pace of business adjustment of BASF is steadily advancing. On Feb. 17, BASF announced that it had signed an agreement with Sherwin-Williams to sell its Brazilian decorative coatings business for $1.15 billion.
The Brazilian decorative coatings business, which is part of BASF's coatings division, had sales of approximately $525 million in 2024 and was its only sizable B2C business.
BASF believes that the business operates almost exclusively in Brazil and has limited synergies with its other coatings businesses. The signing is an important step for BASF in unlocking the value of its own business.
In the second quarter of 2025, BASF intends to further explore strategic options for its remaining coatings business, including automotive OEM coatings, refinish paints, and surface treatments.
When facing the changes in the market and economic environment, BASF initiated the reform of reducing costs and increasing efficiency. In October 2022, BASF became one of the first chemical companies to launch a significant cost reduction program. In February 2023, a series of concrete measures will be introduced to reduce costs in non-production areas in Europe and to restructure production at the Ludwigshafen site. At the beginning of 2024, BASF again announced additional cost reduction measures at the Ludwigshafen site, followed by the sale of the bioenergy enzymes business, the mining flocculants business, and the Food and Health Functional Ingredients business.
In September 2024, BASF launched a new "Winning" strategy to differentiate the management of its core industrial solutions, Nutrition and care, and its autonomous businesses (environmental catalysts and metal solutions, battery materials, coatings and agricultural solutions). Basf offers autonomous businesses more strategic and operational flexibility to respond to the specific needs of the markets in which they operate.
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