EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a prominent US private equity firm, following the withdrawal of competing bidder Castlelake. Apollo’s offer includes a payment of £7.15 per easyJet share, with the transaction anticipated to finalize by March 2027, pending necessary approvals. This move comes after easyJet initially favored a potential sale to Castlelake, only for Apollo to enhance its bid, leading to an intense bidding war that Castlelake eventually exited.
Under the terms of the agreement, easyJet founder Stelios Haji-Ioannou and his family are set to maintain their current shareholding. Apollo’s ownership will be restricted to 49.9%, with a distinct shareholding structure devised to ensure compliance with European Union ownership regulations. Apollo has pledged to retain easyJet’s headquarters in both the UK and the EU, while also supporting the airline’s existing growth plans, citing significant long-term opportunities in easyJet’s European and UK aviation network.
The board of easyJet has expressed that the offer from Apollo provides shareholders with immediate and appealing value, alongside a recognition of the airline’s robust position and future potential. This announcement follows a period of volatility for easyJet’s share prices, which saw a significant drop after Castlelake withdrew, subsequently recovering as investors welcomed the confirmation of Apollo’s successful bid.
This development highlights Apollo Global Management’s confidence in easyJet’s market position and its strategic importance in the European aviation sector. The acquisition marks a pivotal moment for easyJet, positioning it for future expansion under new ownership while maintaining its operational base and strategic direction within Europe and the UK.