EasyJet has finalized a £5.7 billion acquisition agreement with Apollo Global Management, a US-based private equity firm, following the withdrawal of Castlelake from the competitive bidding process. Apollo’s offer of £7.15 per share has been accepted, with the deal anticipated to close by March 2027, pending necessary approvals.
Originally, EasyJet had shown a preference for a potential sale to Castlelake. However, Apollo’s enhanced offer led to an intense bidding contest, ultimately resulting in Castlelake opting out of submitting a final bid. Despite the change in ownership, EasyJet’s founder Stelios Haji-Ioannou and his family will maintain their current shareholding. Apollo’s ownership will be restricted to 49.9%, with a distinct shareholding structure established to ensure compliance with European Union regulations on airline ownership.
Apollo has expressed a commitment to sustaining EasyJet’s operations from its UK and EU headquarters and plans to support the airline’s existing strategies for growth. The firm recognizes substantial long-term prospects within EasyJet’s aviation network across Europe and the UK. This strategic move aligns with Apollo’s vision of capitalizing on EasyJet’s established market presence and potential for expansion.
The board of EasyJet has endorsed the offer, highlighting that it provides shareholders with both immediate value and acknowledgment of the airline’s robust future potential. The news follows a period of volatility in EasyJet’s share prices, which initially plummeted after Castlelake’s exit but rebounded as investors responded positively to the confirmed deal with Apollo.