EasyJet has reached a £5.7 billion acquisition agreement with Apollo Global Management, a US private equity firm, after Castlelake, a competing bidder, withdrew from the takeover process. Apollo will pay £7.15 per share for EasyJet, and the deal is projected to finalize by March 2027, pending necessary approvals. Initially, EasyJet had leaned towards a potential sale to Castlelake until Apollo raised its offer, sparking a competitive bidding war. Ultimately, Castlelake chose not to make a final bid.
Under the new ownership, EasyJet founder Stelios Haji-Ioannou and his family are expected to retain their current shareholding. Apollo’s stake in the airline will be limited to 49.9%, with a separate shareholding arrangement in place to ensure compliance with European Union ownership regulations. Apollo has pledged to maintain easyJet’s headquarters in the UK and EU and to support the airline’s existing growth strategy, emphasizing the long-term potential it sees in easyJet’s European and UK aviation network.
The board of EasyJet has expressed that Apollo’s offer provides shareholders with immediate and attractive value while acknowledging the airline’s strength and future opportunities. The development follows a volatile period for EasyJet’s shares, which fell sharply following Castlelake’s withdrawal but later recovered as investors responded positively to the confirmed deal with Apollo.
This acquisition marks a significant shift for EasyJet, as it navigates the competitive landscape of the airline industry. Apollo’s investment is seen as a vote of confidence in the airline’s strategic direction and its capacity for continued growth. The private equity firm’s involvement is expected to bring new opportunities for EasyJet as it capitalizes on its established network across Europe and the UK.