Infrastructure investor I Squared Capital and private equity group Blackstone are reportedly moving closer to a potential acquisition of German media company Stroeer in a deal that could value the business at around €2.5bn, according to a report by Bloomberg.
The report cites unnamed sources familiar with the discussions as revealing that the firms are considering a joint offer in the mid-€40-per-share range. The move would represent a premium to Stroeer’s recent trading price and follows earlier discussions focused solely on acquiring the company’s outdoor advertising operations.
The consortium is now understood to be evaluating a bid for the entire company rather than just its billboard division. Previous plans to target Stroeer’s core out-of-home advertising business have reportedly been abandoned as negotiations evolved.
Shares in Stroeer rose sharply following reports of the potential transaction, climbing as much as 8.8% during trading in Frankfurt and valuing the company at roughly €2.2 billion.
Based in Cologne, Stroeer generated approximately €2.1bn in revenue last year and reported earnings before certain items of €626 million. Its out-of-home advertising segment remains the company’s largest contributor to sales, spanning both digital and traditional billboard assets.
The group also owns a number of non-core businesses, including beauty retailer Asambeauty and data platform Statista.
Former chief financial officer Henning Gieseke previously indicated that separating the billboard business from the rest of the company would present operational challenges, particularly regarding the future structure of the remaining assets.
While discussions between the parties are said to be progressing, there is currently no certainty that a formal offer will be submitted.
