In a significant business move, EasyJet has agreed to a £5.7 billion acquisition deal with Apollo Global Management, a US-based private equity firm. This agreement follows the withdrawal of Castlelake, EasyJet’s initial preferred bidder, from the competitive acquisition process. Apollo’s offer of £7.15 per EasyJet share effectively secured the deal, which is projected to finalize by March 2027, contingent upon regulatory approvals.
Initially, EasyJet had leaned towards a sale to Castlelake. However, as Apollo increased its bid, the dynamics shifted, leading to a competitive showdown. Ultimately, Castlelake opted not to place a final bid, paving the way for Apollo to secure the agreement. Under the new ownership structure, EasyJet founder Stelios Haji-Ioannou and his family will maintain their current shareholding. Apollo’s ownership stake will be limited to 49.9%, ensuring compliance with European Union ownership regulations through a specially designed shareholding setup.
Apollo has expressed its commitment to sustaining EasyJet’s operations within both the UK and the European Union, while aligning with the airline’s ongoing growth strategy. The private equity firm has identified substantial long-term growth potential within EasyJet’s UK and European aviation network, projecting a positive outlook for the airline’s future under its new stewardship.
The EasyJet board has endorsed the Apollo offer, highlighting the immediate and appealing value it provides to shareholders, alongside acknowledging the airline’s robust future prospects. This announcement followed a period of turbulence in EasyJet’s share value, which experienced a sharp decline after Castlelake’s withdrawal. However, the confirmation of the Apollo deal prompted a recovery, as investors reacted positively to the news.