EasyJet has entered into a £5.7 billion acquisition deal with US-based private equity firm Apollo Global Management. This agreement comes after Castlelake, a competing bidder, pulled out of the acquisition race. Under the terms of the deal, Apollo has agreed to purchase each easyJet share for £7.15. The transaction, which is pending necessary approvals, is anticipated to close by March 2027.
Initially, easyJet had leaned towards a potential sale to Castlelake. However, Apollo’s subsequent offer, which was more competitive, led to an intense bidding war. Despite the competition, Castlelake ultimately opted not to place a final bid, paving the way for Apollo’s successful acquisition.
As part of the new ownership arrangement, easyJet founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding. Apollo’s ownership stake will be limited to 49.9% to ensure compliance with European Union ownership regulations. Moreover, a separate shareholding structure will be implemented to meet these requirements.
Apollo has assured its commitment to preserving easyJet’s headquarters in both the UK and the European Union and has expressed support for the airline’s existing growth strategy. The private equity firm sees promising long-term growth opportunities within easyJet’s European and UK aviation network.
EasyJet’s board has endorsed the offer, highlighting its provision of immediate and substantial value to shareholders while acknowledging the airline’s robust future potential. This announcement followed a sharp decline in easyJet’s share prices after Castlelake’s withdrawal, with a subsequent recovery as investors reacted positively to the confirmed deal with Apollo.