BASF puts $540 mn steel coatings business for sale

BASF, the world's largest chemical producer is putting its steel coatings business up for sale, in a deal that could value the business around €500 million ($540 million), Reuters yesterday reported, citing several people familiar with process.

The German chemical company has hired HSBC in helping with the sale process and has opened its steel coatings business books to five industrial players who have shown interest, the report said.

The business generates €60-€70 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) and could fetch about 8 times that much, the report added.

Its steel coatings business is part of BASF's €3 billion coatings unit, which generates 77 per cent of its sales from the automotive industry.

Frankfurt, London and Zurich Stock Exchanges-listed BASF has a broad portfolio ranging from chemicals, plastics, performance products and crop protection products to oil and gas.

It has 390 other production sites in Europe, Asia, Australia, Americas and Africa and customers in over 200 countries.

It employs more than 113,000 people and posted net income of €7.2 billion last year on sales of €74.3 billion.

BASF in India has 2,186 employees at about 20 production sites & sales offices and R&D centers in Mumbai and Mangalore. In 2014, BASF had sales of €1.1 billion in India.