Carlyle is preparing to syndicate approximately €4bn in debt financing to support its €7.7bn acquisition of BASF SE's coatings business, according to Bloomberg. The private equity firm, alongside co-investor Qatar Investment Authority, struck a binding agreement last year to carve out BASF Coatings into a standalone company, with BASF retaining a 40% stake.
Bank of America and Goldman Sachs are arranging the financing package, which includes leveraged loans in both dollars and euros, plus euro-denominated senior secured notes. The debt sale is targeted for late March or early April. BASF Coatings, which produces high-performance automotive coatings and surface treatments, reported approximately €3.8bn in sales in 2024.
The transaction comes amid challenges in Europe's chemicals sector, which faces rising costs and competition from cheaper imports. Recent market turbulence was evident when Carlyle-backed Nouryon withdrew a planned $5.8bn leveraged loan in October after investor resistance. However, the broader leveraged finance market has shown resilience in early 2026, with several large buyout financings lining up for syndication.
Source: Private Equity Insights · Summarized by HeadlinesBriefing