BASF Brazil decorative coatings business ushered in a new owner, Xuanwei took over for $1.15 billion.

Recently, the global chemical giant BASF announced that it has reached an important deal with the well-known coatings company Xuanwei to sell its decorative coatings business in Brazil to the latter. The purchase price of the transaction is $1.15 billion and will be conducted on a cash and debt-free basis.

The sale covers the decorative coatings segment of BASF's coatings business in Brazil, including production sites in Demarchi and Jaboatão, related contracts, Suvinil and Glasur brands, and approximately 1000 employees. The completion of the transaction is expected in the second half of 2025, subject to formal approval from the relevant competition authorities.

BASF's Brazilian decorative coatings business achieved sales of approximately US $0.525 billion in 2024 and is BASF's only large-scale B2C business. The business has an extensive portfolio of paints and paint preparation products in Brazil, as well as a range of digital solutions. However, because the business operates almost entirely in Brazil and has limited synergies with other coatings businesses within BASF, BASF decided to sell it.

Anup Kothari, member of the executive board of BASF Europe and head of the coatings business unit, said: "We are very happy to find a new home for Suvinil. This signing marks an important step in unlocking the value of our independent business. We believe the decorative coatings business will continue to thrive under Xuanwei. At the same time, we are also very grateful to the hard work and dedication of our employees. It is their efforts that have made Suvinil the most recognized brand of decorative coatings in Brazil."

Heidi G. Petz, Chairman, President and Chief Executive Officer of Sherwin, said he was highly excited about the acquisition: "For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin's operations in Latin America, as Suvinil brand is well known and highly trusted by procurement influentors and norm-setters throughout the value chain. We look forward to leveraging the strengths of both companies to further enhance customer value. We have great respect for the expertise and dedication of the Suvinil team and are excited about the new opportunities this merger will bring to customers and employees."

pending the completion of the transaction, BASF and Xuanwei will continue to operate independently. At the same time, BASF has planned to enter the market in the second quarter of 2025 to further explore strategic options for its remaining coatings business, including automotive OEM coatings, refinish and surface treatment.

This transaction not only marks an important step in optimizing BASF's business portfolio, but also provides strong support for the company's expansion in the Latin American market. In the future, with the formal completion of the transaction, the two sides are expected to achieve more robust development in their respective fields.