EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a US-based private equity firm, following the withdrawal of competitor Castlelake from the bidding process. Under the terms of the deal, Apollo is set to pay £7.15 per share for the airline, with the transaction anticipated to conclude by March 2027, pending requisite approvals.
The acquisition comes after a period of competitive bidding, during which Apollo increased its offer, outperforming Castlelake, which had been initially favored by easyJet for a potential sale. Despite this initial inclination, Castlelake chose not to put forward a final bid, paving the way for Apollo’s successful proposal.
Under the new arrangement, easyJet’s founder, Stelios Haji-Ioannou, along with his family, are expected to maintain their existing shareholdings. Apollo’s ownership will be limited to 49.9%, ensuring compliance with European Union regulations through a distinct shareholding framework. The private equity firm has also pledged to sustain easyJet’s current UK and EU headquarters and support the airline’s ongoing growth strategy, recognizing considerable long-term potential in its European and UK aviation operations.
The board of easyJet has endorsed the offer, highlighting that it provides shareholders with immediate and attractive value while acknowledging the airline’s robust prospects. The announcement of the deal follows a period of volatility in easyJet’s share prices, which initially saw a sharp decline after Castlelake’s withdrawal but later rebounded as the market reacted positively to the confirmed agreement with Apollo.