I Squared and Blackstone Explore Bid for Ströer Unit
I Squared Capital is partnering with Blackstone on a potential offer for Ströer SE’s core advertising business, according to a report by Bloomberg as cited in Private Equity Wire. This marks a renewed push into the German media group after I Squared’s earlier attempt stalled in January due to insufficient investor support. The firms have recently been in talks about acquiring Ströer’s out-of-home advertising operations, which include digital content assets.
Background on Previous Efforts
I Squared previously explored a bid for the business earlier this year but withdrew in January after failing to secure sufficient investor support, according to the report. A previous attempt led by I Squared to acquire the unit last year also fell apart due to concerns over financing and broader uncertainty about the German economic outlook. Ströer executives have acknowledged that separating the billboard business presents structural complexities, particularly around how the remainder of the group would be positioned following any potential sale.
Current Market and Company Context
The latest approach comes as Ströer’s share price has declined further, valuing the company at roughly €2bn, with shares jumping as much as 9.4% on Monday and closing up around 3% in Frankfurt. Some market participants believe Ströer’s out-of-home division could be valued at €3.5bn or more in a potential transaction, though the consortium has not yet decided whether to pursue a carve-out of the advertising unit or a broader bid for the entire company. These discussions occur amid ongoing uncertainty at senior management level, with co-chief executive Christian Schmalz signalling he will not extend his contract beyond 2028 and chief financial officer Henning Gieseke considering an exit.
Uncertainties in the Process
Talks remain at an early stage, and there is no guarantee a formal offer will be made, with people close to the process stressing this point, as noted in Private Equity Wire. Both I Squared, Blackstone, and Ströer reportedly declined to comment on the matter.
