In a significant development for the aviation industry, EasyJet has agreed to a takeover deal valued at £5.7 billion with the US private equity firm Apollo Global Management. This agreement follows the withdrawal of Castlelake, another potential acquirer, from the competitive bidding process. Under the terms of the deal, Apollo will pay £7.15 per share of easyJet stock, with the transaction anticipated to conclude by the end of March 2027, pending regulatory approvals.
The initial recommendation by EasyJet was in favor of a sale to Castlelake, but Apollo’s increased offer led to a competitive scenario. Ultimately, Castlelake opted not to continue with a final bid, paving the way for Apollo’s successful acquisition. As part of the agreement, EasyJet’s founder, Stelios Haji-Ioannou, and his family are expected to maintain their current shareholding position. Apollo’s ownership will be capped at 49.9%, ensuring compliance with European Union ownership regulations through a distinct shareholding arrangement.
Apollo has expressed its commitment to preserving EasyJet’s headquarters in both the UK and the European Union, along with supporting the airline’s existing growth strategies. The private equity firm sees considerable long-term potential in EasyJet’s aviation network across Europe and the UK. This strategic vision aligns with EasyJet’s aspirations, as affirmed by the airline’s board, which acknowledged that the offer provides shareholders with immediate, attractive value while recognizing EasyJet’s robust prospects.
The announcement of Apollo’s acquisition comes in the wake of a sharp decline in EasyJet’s share prices following Castlelake’s exit from the bidding race. However, the confirmation of the deal with Apollo has helped shares recover, as investors reacted positively to the news. This acquisition marks a pivotal moment for EasyJet as it transitions under new ownership while preserving its strategic direction and market presence in the European aviation sector.