Out of Home: Investors Seek Control of Ströer

The long-running speculation surrounding Ströer’s future ownership appears to be entering a decisive phase. According to a report by German business periodical Manager Magazin, infrastructure-focused investors I Squared Capital and Infravia Capital Partners have reached an understanding with Ströer’s two largest shareholders and are poised to take control of the Cologne-based media group.

Neither Ströer nor the prospective buyers initially commented on the reports. Yet the latest developments suggest that one of Europe’s most influential out-of-home operators could soon enter a new chapter.

Investors target control, not necessarily majority ownership

According to the reports, founder’s son Dirk Ströer plans to sell his entire 20 percent shareholding, while CEO Udo Müller is expected to remain involved and dispose of only part of his approximately 24 percent stake. Through a shareholder arrangement, the investors could effectively gain control of the company even without owning more than 50 percent of the shares.

The reported transaction values Ströer at around €2.5 billion. While this represents a premium of roughly 20 percent over the recent market value, it falls significantly short of the valuations discussed during previous takeover talks. Over the past two years, Ströer negotiated with various financial investors – including Blackstone, Hellman & Friedman, and KKR – reportedly asking for 4bn EUR valuation just for the OoH-business.

At its core, Ströer remains an out-of-home company.

The group dominates the German static and especially digital out of home advertising market. Its OoH division generates almost half of group revenue and remains the company’s most profitable and strategically important asset.

At the same time, Ströer has spent years expanding beyond its traditional roots. Through a series of acquisitions, the company assembled a diverse portfolio that includes digital publishing, online advertising, market intelligence, and consumer products. Assets such as T-Online, Statista, and Asambeauty have transformed Ströer into a broad media and services group rather than a pure-play advertising company.

That diversification has not always convinced investors. Critics have long argued that several of the group’s peripheral businesses add complexity without contributing proportionally to the company’s valuation.

Infrastructure investors see opportunity in digital OoH

The reported interest from I Squared Capital and Infravia is hardly surprising. Both firms specialize in infrastructure investments, and DooH assets provide a similar stable cash-flow over long-term contracts such as telecommunications towers, fibre networks, or energy infrastructure.

DooH is booming in Germany, Europe and worldwide. However, digitalization comes at a price. Expanding premium digital networks requires significant investment in hardware, software, and infrastructure. Access to long-term capital could therefore accelerate Ströer’s digital ambitions in ways that would be more challenging as a standalone listed company.

CEO Udo Müller remains key

Industry sources cited in the manager magazine report suggest that the prospective owners are keen to retain Müller. He is considered the executive with the most market knowledge and strong industry relationships. Just a few weeks ago co-founder Udo Müller returned running the company, after the Co-CEO Christian Schmalzl and CFO left the company.

Whether the reported transaction ultimately materializes remains to be seen. But after years of recurring takeover rumours, the latest reports suggest that Ströer may be closer than ever to becoming what many investors always believed it should be: a pure-play out-of-home powerhouse.