BASF SE commenced the process to sell its construction chemicals business, which could fetch the diversified chemicals company about €2.7 billion, Bloomberg News reported, citing sources familiar with the matter and a representative from the German company.
BASF reportedly has reached out to parties interested in its construction chemicals business.
Companies that are considering offers include Carlyle Group LP and Standard Industries Inc., while Bain Capital LP, Cinven Ltd. and KKR & Co. may also express interest in the BASF unit, the report's sources said.
In October 2018, BASF Chairman and CEO Martin Brudermüller said in an earnings call that the company had decided to evaluate strategic options for the construction chemicals division, including a possible sale or a joint venture.
Earlier this month, Marc Ehrhardt, president of finance – Ludwigshafen at BASF, said the company is "fully on track" to reach an agreement with a buyer at the end of 2019.
The construction chemicals unit generated sales of €2.46 billion in 2018, up from €2.41 billion in 2017.