International. BASF and Sherwin-Williams have signed an agreement for the sale of the decorative paints business in Brazil, which is part of BASF's Coatings division.
The purchase price, on a cash-free and debt-free basis, is $1.15 billion. The transaction is structured as a share sale and includes the production sites in Demarchi and Jaboatão, the related contracts, the Suvinil and Glasu! brands, as well as approximately 1,000 employees. The divestment is expected to be completed in the second half of 2025, subject to approval by the relevant competition authorities.
The decorative paints business, which generated sales of approximately $525 million in 2024, is BASF's only large B2C operation and has a broad portfolio of paints, surface preparation products and digital solutions. This business operates almost exclusively in Brazil and has few synergies with other BASF coatings units.
"The signing of this agreement marks a key step in generating value for our independent businesses, and I am pleased that we have made rapid progress in finding a new home for Suvinil," said Anup Kothari, member of the Executive Board of Management of BASF SE and responsible for the Coatings division. "We are convinced that the decorative paints business will continue to thrive as part of Sherwin-Williams. We are deeply grateful to our employees for their hard work and dedication, which have made Suvinil the most recognized brand of decorative paints in Brazil."
"For more than 60 years, Suvinil has been synonymous with innovation and quality. This business highly complements Sherwin-Williams' operations in Latin America, as the Suvinil brand is widely recognized and trusted among key players in the value chain," said Heidi G. Petz, Chairman, President and Chief Executive Officer of Sherwin-Williams. "We are excited to leverage the strengths of both companies to continue to generate value for our customers. We have great respect for the expertise and dedication of the Suvinil team, and we are excited for the opportunities this combination will bring to both customers and employees."
Until the completion of the transaction, BASF and Sherwin-Williams will continue to operate completely independently. Business continuity will be ensured for customers throughout the process. In accordance with legal requirements and local practices, representatives of the employees of the decorative paints business will be involved in the process.
In the second quarter of 2025, BASF intends to explore further strategic options for its remaining activities in the Coatings division, which include automotive original equipment manufacturer (OEM) coatings, automotive refinish and surface treatment.
