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BASIC INDUSTRIES: BASF (BASGR: A3/A-/A): Brazilian Paints Sale

BASIC INDUSTRIES

Might help with liquidity at the margin

  • BASF to sell Brazilian paint unit for $1.15bn cash
  • Deal to close 2H 25
  • Unit generates $525m sales so on 12% EBITDA Margin that would be $63m earnings
  • Reduces leverage by 0.1x which is immaterial
  • BASF has €1.9bn in bonds falling due in 2025
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Might help with liquidity at the margin

  • BASF to sell Brazilian paint unit for $1.15bn cash
  • Deal to close 2H 25
  • Unit generates $525m sales so on 12% EBITDA Margin that would be $63m earnings
  • Reduces leverage by 0.1x which is immaterial
  • BASF has €1.9bn in bonds falling due in 2025