EasyJet has reached an agreement for a £5.7 billion acquisition by Apollo Global Management, a US-based private equity firm. This development follows the withdrawal of Castlelake, another contender in the bidding process. Apollo has agreed to pay £7.15 per share for the airline, and the transaction is anticipated to conclude by the end of March 2027, pending necessary approvals.
Initially, EasyJet had shown a preference for a potential deal with Castlelake. However, as Apollo increased its offer, a competitive bidding situation emerged. Eventually, Castlelake opted not to present a final bid. Under the new ownership arrangement, EasyJet founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding. Apollo’s ownership will be limited to 49.9%, ensuring compliance with European Union ownership rules through a distinct shareholding structure.
Apollo has pledged to keep EasyJet’s headquarters in both the UK and the European Union, aligning with the airline’s existing growth plans. The private equity firm has expressed confidence in EasyJet’s long-term potential within the European and UK aviation market. This strategic move is intended to support and bolster EasyJet’s current operational framework.
The board of EasyJet has welcomed Apollo’s offer, highlighting the immediate and appealing value it presents to shareholders while acknowledging the airline’s robust future prospects. The confirmation of Apollo’s involvement brought a positive turnaround in EasyJet’s share prices, which had previously dropped sharply following Castlelake’s exit from the acquisition race.