BASF to sell Brazil paints business to Sherwin-Williams, other moves ahead

LONDON (ICIS)–BASF is to sell its Brazilian decorative paints business to Sherwin-Williams for $1.15 billion and is set to begin exploring options for other parts of its coatings portfolio, the Germany-headquartered chemicals major said on Monday.

The deal, to be structured as a share deal, is expected to close in the second half of 2025, with both companies to act fully independently until the completion of the transaction, the company said.

BASF had marked the divestment of the Brazil business as a priority when it unveiled its new corporate strategy in September 2024, with around 1,000 employees and two production sites, in Demarchi and Jaboatao, included in the sale.

The business, which also includes paints brands Suvinil and Glasu!, largely operates in Brazil and has “limited synergies” with BASF’s other coatings businesses, the company said in a statement.

BASF projects further divestments in the coatings space and will begin exploring options for its other assets in the space in the next few months.

“In the second quarter of 2025, BASF intends to approach the market to further explore strategic options for its remaining coatings activities, which include automotive OEM coatings, refinish coatings and surface treatment,” the company said.

At its September strategy announcement last year, CEO Markus Kamieth outlined an overhaul of BASF’s structure to mark a clearer line between core operations and “standalone units” serving specific industries.

The company identified its chemicals, materials, industrial solutions, and nutrition and care segments as the core businesses, and environmental catalyst and metal solutions, battery materials, coatings, and agricultural solutions categorised as standalone.

“In the coming years, BASF will focus on strengthening and profitably growing its core businesses. For the standalone businesses, BASF will pursue active portfolio options where this adds value for BASF and its shareholders,” the company said at the time.

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