EasyJet has agreed to a £5.7 billion acquisition deal with Apollo Global Management, a private equity firm based in the United States. This decision follows the withdrawal of competitor Castlelake from the bidding process. Under the terms of the agreement, Apollo will pay £7.15 for each share of easyJet, and the acquisition is anticipated to conclude by the end of March 2027, pending necessary approvals.
Initially, easyJet had leaned towards a possible sale to Castlelake. However, Apollo presented an improved offer, which initiated a competitive bidding war. Ultimately, Castlelake opted not to make a final offer, clearing the path for Apollo’s takeover. Despite the change in ownership, easyJet’s founder, Stelios Haji-Ioannou, along with his family, is expected to maintain their current shareholding.
To align with European Union ownership regulations, Apollo’s shareholding will be capped at 49.9%, alongside a distinct shareholding structure. Apollo has also committed to preserving easyJet’s headquarters in both the United Kingdom and the European Union, as well as supporting the airline’s current growth strategy. The firm sees considerable long-term opportunities in easyJet’s aviation network across Europe and the UK.
EasyJet’s board of directors has expressed that the offer from Apollo provides shareholders with immediate and attractive value while acknowledging the airline’s robust performance and future potential. The announcement of the deal follows a period of volatility in easyJet’s share price, which initially plummeted after Castlelake pulled out of the competition, but later recovered as investors reacted positively to the confirmed agreement with Apollo.