In a significant development for the aviation industry, EasyJet has reached a £5.7 billion agreement to be acquired by Apollo Global Management, a US-based private equity firm. This comes after Castlelake, a competing bidder, opted out of the acquisition competition. Under the terms of the agreement, Apollo will purchase EasyJet shares at £7.15 each, with the transaction anticipated to conclude by the end of March 2027, pending the necessary regulatory approvals.
The takeover saga began with EasyJet leaning towards a potential sale to Castlelake. However, Apollo upped its offer, triggering a competitive bidding process. Ultimately, Castlelake decided against submitting a final bid, paving the way for Apollo’s successful acquisition. Notably, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding under the newly proposed ownership framework. Apollo’s ownership will be limited to a 49.9% stake, structured to ensure compliance with European Union ownership regulations.
In its commitment to EasyJet’s operational stability and growth, Apollo has pledged to retain the airline’s headquarters in both the UK and the European Union. The private equity firm also expressed its belief in the long-term growth prospects of EasyJet’s aviation network across Europe and the UK, aligning with the airline’s current expansion strategy.
The board of EasyJet has endorsed Apollo’s offer, highlighting the immediate and attractive value it provides to shareholders while acknowledging the airline’s robust future potential. The announcement marked a recovery in EasyJet’s share price, which had experienced a sharp decline following Castlelake’s withdrawal. Investor sentiment improved once the Apollo deal was confirmed, signaling confidence in the airline’s future under new ownership.