German advertising group Stroeer’s attempt to sell its multi-billion-euro outdoor advertising business has hit a roadblock as two private equity bidders KKR and Hellman & Friedman (H&F) walked away from negotiations due to valuation disagreements, according to a report by Reuters.
The report cites unnamed sources as revealing that Stroeer, Germany’s leading outdoor advertiser, had previously attracted interest from private equity firms, seeing initial indicative offers that valued its “out-of-home” advertising business significantly above its overall market capitalisation of approximately €3bn.
However, in recent weeks both KKR and H&F have withdrawn from talks, citing differences in price expectations, the sources said. Stroeer’s owners, including Co-Founder and Co-CEO Udo Mueller, sought close to €4bn, while private equity bidders valued the business at around €3bn after initial due diligence one source noted.
Stroeer’s stock price responded negatively to the stalled talks, falling as much as 14.3% before closing more than 8% lower — the sharpest one-day decline since March 2020.
While KKR, H&F, and Stroeer declined to comment on the departures, Stroeer maintained that “open-ended discussions with potential investors” continue, and new parties have since expressed interest.
JPMorgan, advising Stroeer on the potential sale, continues to explore interest from other potential bidders, two sources confirmed. The investment bank declined to comment on the status of the process.
