EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a U.S. private equity firm, following the withdrawal of competing bidder Castlelake from the acquisition process. Under the terms of the agreement, Apollo will pay £7.15 per easyJet share, with the transaction expected to conclude 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 scenario. Castlelake ultimately chose not to place a final bid. The acquisition arrangement ensures that easyJet’s founder, Stelios Haji-Ioannou, and his family will maintain their current shareholding. Apollo’s share will be limited to 49.9%, adhering to a shareholding structure designed to meet European Union ownership requirements.
Apollo Global Management has pledged to keep easyJet’s headquarters in both the UK and the EU, endorsing the airline’s existing growth strategy. The private equity firm expressed its belief in the significant long-term potential of easyJet’s operations within the European and UK aviation markets.
The board of easyJet has expressed that Apollo’s offer delivers substantial and immediate value to shareholders while reflecting the airline’s robust performance and future potential. The announcement of the deal came after a sharp decline in easyJet’s share prices following Castlelake’s exit, which later rebounded as investors responded positively to the confirmed acquisition by Apollo.