In a significant development within the aviation industry, EasyJet has reached an agreement for a £5.7 billion acquisition by the American private equity firm Apollo Global Management. This move follows the withdrawal of Castlelake, another contender in the acquisition battle. Under the terms of the deal, Apollo will pay £7.15 for each EasyJet share, with the transaction anticipated to conclude by March 2027, pending the necessary regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake, but Apollo’s decision to enhance its offer sparked a competitive bidding atmosphere. Despite this, Castlelake chose not to submit a final bid, clearing the path for Apollo to proceed with the takeover. The airline’s founder, Stelios Haji-Ioannou, along with his family, is expected to maintain their current shareholding. Apollo’s ownership will be limited to 49.9% to ensure compliance with European Union ownership regulations, supported by a separate shareholding framework.
As part of its commitment, Apollo has pledged to retain EasyJet’s headquarters in the UK and the European Union, and to back the airline’s existing growth strategy. The private equity firm has expressed confidence in the long-term prospects of EasyJet’s operations across the European and UK aviation sectors, seeing considerable potential for future development.
The EasyJet board has endorsed the Apollo offer, highlighting that it delivers immediate and appealing value to shareholders while also acknowledging the robustness and future potential of the airline. This announcement follows a period of volatility in EasyJet’s share prices, which dropped sharply after Castlelake’s exit but rebounded upon confirmation of the Apollo agreement.