BASF and Sherwin-Williams have signed an agreement for the sale of BASF’s Brazilian decorative paints business, which is part of the company’s coatings division.

The purchase price, on a cash- and debt-free basis, is approximately EUR 1.07 billion. The transaction is structured as a share deal and includes production sites in Demarchi and Jaboat o, associated contracts, the “Suvinil” and “Glasu!” brands, as well as around 1,000 employees.

BASF’s decorative decorative paints business which generated approximately EUR 490 million in sales in 2024, is the company’s only significant B2C operation. It offers a broad portfolio of paints, paint preparation products, and digital solutions and operates almost exclusively in Brazil. According to the company, the move marks a crucial step for the active portfolio management in line with BASF’s “Winning Ways” strategy.

A clear distinction between core and non-core business

“Given that the business primarily operates in Brazil and has limited synergies with other businesses within our coatings division, the decision to sell Suvinil was a strategic one in line with our new portfolio management approach,” commented Anup Kothari, member of the Board of Executive Directors of BASF. “We now differentiate between our core businesses and our standalone businesses”, he explained. ”Our standalones have one thing in common: They compete with pure-play peers that are subject to their own market trends.“ In the second quarter of 2025, BASF plans to engage with the market to further evaluate strategic options for its remaining coatings activities, which include automotive OEM coatings, refinish coatings, and surface treatment.

Sunivil and Sherwin-Williams will remain entirely independent companies until the transaction is finalised. The transaction is expected to be completed in the second half of 2025, subject to customary closing conditions, including regulatory approval in Brazil. Upon completion, Suvinil will become part of the Sherwin-Williams Consumer Brands Group. For Sherwin-Williams the move is a step towards more growth in Brazil and the region. “Suvinil is a premier provider of architectural paints in Brazil and will accelerate our commitment to provide industry-leading solutions for our customers while delivering profitable above-market growth in the region,” stated Heidi G. Petz, Chair, President and Chief Executive Officer at Sherwin-Williams.

The Brazilian paints and coatings market

The Brazilian coatings market is currently evolving in a promising manner and saw a very successfull last year. According to Abrafati, the Brazilian coatings manufacturers association, the country’s paint and coatings industry reached a new sales record in 2024, continuing its strong growth trajectory. The total volume hit 1.983 billion litres—an increase of 112 million liters compared to the previous year, representing a solid 6.0% growth. This surpasses even the 5.7% expansion seen in 2021, a year previously considered an industry outlier. With nearly 2 billion liters sold, 2024 marks the best result in the historical series. Sales remained strong across all product categories. Decorative paints continued their upward trend, reaching a record volume of 1.490 billion liters — up 5.9% year over year. This sustained demand reflects a growing home improvement trend. More information on the Brazilian coatings market can be found on page 39 in our “Facs in five” section.