EasyJet has reached a £5.7 billion acquisition agreement with Apollo Global Management, a US private equity firm, following the withdrawal of its competitor, Castlelake, from the bidding process. Apollo has agreed to pay £7.15 for each easyJet share, and the transaction is expected to be finalized by March 2027, pending regulatory approval.
Initially, EasyJet had leaned towards a potential sale to Castlelake, but the situation evolved when Apollo upped its offer, sparking a competitive bid. Eventually, Castlelake opted out of submitting a final offer, paving the way for Apollo to secure the deal. Under the new ownership arrangement, EasyJet’s founder Stelios Haji-Ioannou and his family are anticipated to keep their current shares. Apollo’s ownership will be limited to a maximum of 49.9%, with a distinct shareholding structure to ensure compliance with European Union ownership laws.
Apollo has expressed its commitment to maintaining easyJet’s headquarters in both the United Kingdom and European Union while endorsing the airline’s current growth plans. The private equity firm has identified substantial long-term opportunities within easyJet’s aviation network across Europe and the UK, suggesting a strategic alignment with the airline’s future aspirations.
EasyJet’s board has welcomed the offer, emphasizing that it delivers immediate and appealing value to shareholders while acknowledging the airline’s robust position and potential for future growth. The news of the confirmed Apollo acquisition followed a notable drop in easyJet’s share prices after Castlelake’s exit, although the shares later rebounded as investors reacted positively to the finalized agreement with Apollo.