Germany's BASF to sell coatings division to US investor Carlyle

Chemical giant BASF has found a US buyer for its coatings business, the German firm announced on Friday.

According to a statement, the DAX-listed company has reached an agreement with US investor the Carlyle Group, with a valuation of €7.7 billion ($8.9 billion).

The sale is expected to be completed in the second quarter of next year and will generate €5.8 billion before tax for BASF, which will continue to hold a 40% stake in the division.

The planned sale is a further step in the restructuring planned by BASF boss Markus Kamieth.

The firm has been suffering from an extended general downturn in the industry.

Important customers of the coatings division come from the German automotive industry, for example, which is also struggling with problems due to competition from China and the slowdown of the electric car boom in parts of the world.

According to BASF, the coatings division has 10,300 employees and an annual turnover of €3.8 billion.