Private equity interest in Stroeer’s outdoor advertising business has cooled as KKR and Hellman & Friedman withdrew from negotiations due to pricing disagreements. 

The German advertising group had initially attracted strong buyout interest, with indicative offers valuing its “out-of-home” advertising division significantly above Stroeer’s €3bn market capitalisation.

Sources familiar with the matter revealed that Stroeer’s owners, including co-founder and co-CEO Udo Mueller, sought close to €4bn for the business. However, after completing initial due diligence, private equity bidders valued the unit closer to €3bn, leading to both firms exiting discussions in recent weeks.

The news triggered a sharp drop in Stroeer’s stock price, which fell as much as 14.3% before closing more than 8% lower, marking its worst one-day decline since March 2020.

While KKR, H&F, and Stroeer declined to comment on the stalled negotiations, Stroeer stated that discussions with potential investors remain ongoing and that new parties have expressed interest. JPMorgan, which is advising Stroeer on the sale, continues to explore interest from alternative bidders. The investment bank has not provided further details on the status of the process.