EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a private equity firm based in the United States. This development follows the exit of rival bidder Castlelake from the competition for the airline. Under the terms of the deal, Apollo will pay £7.15 for each easyJet share, with the transaction anticipated to be finalized by March 2027, pending the necessary regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake. However, the entry of a higher bid from Apollo sparked a competitive bidding process. Castlelake eventually opted out of submitting a final bid, clearing the path for Apollo’s successful acquisition. As part of the agreement, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding within the new ownership framework. Apollo’s ownership will be restricted to a 49.9% stake, ensuring compliance with European Union ownership regulations through a specially designed shareholding structure.
Apollo has assured that EasyJet’s headquarters in the UK and the EU will remain intact, aligning with the airline’s existing growth strategy. The private equity firm has expressed confidence in the long-term growth prospects of EasyJet’s aviation network across Europe and the UK. The airline’s board has endorsed the offer, highlighting that it delivers immediate and attractive value to shareholders while acknowledging the robust future potential of the company.
Following the withdrawal of Castlelake, EasyJet’s shares initially experienced a sharp decline. However, they rebounded as investors reacted positively to the confirmation of Apollo’s deal. This agreement marks a significant strategic shift for EasyJet, positioning the airline for continued growth under new ownership while maintaining a focus on its established operational and strategic objectives.