In a significant development for the aviation industry, EasyJet has agreed to a £5.7 billion acquisition by Apollo Global Management, a US private equity firm. This comes after Castlelake, a rival in the bidding process, withdrew its interest in acquiring the British airline. Apollo has agreed to purchase EasyJet at a price of £7.15 per share, with the transaction anticipated to conclude by March 2027, pending necessary regulatory approvals.
Initially, EasyJet leaned towards a potential sale to Castlelake, but the situation shifted when Apollo presented a higher offer, igniting a competitive scenario. Ultimately, Castlelake chose not to advance with a final bid, clearing the path for Apollo’s takeover. Under the new ownership arrangement, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will retain their current shareholdings. Apollo’s ownership will be limited to 49.9%, with a specially designed shareholding structure to ensure compliance with European Union ownership regulations.
Apollo has pledged to maintain EasyJet’s headquarters in both the UK and the European Union, while supporting the airline’s existing growth plans. The firm sees a promising future in EasyJet’s network across Europe and the UK, highlighting the long-term potential within the aviation sector. This strategic vision aligns with EasyJet’s ongoing expansion goals, offering reassurance about the airline’s direction under new ownership.
The board of EasyJet expressed that the offer from Apollo not only provides immediate value for shareholders but also acknowledges the airline’s robust performance and future opportunities. The announcement of the deal followed a period of volatility for EasyJet’s stock, which initially dropped after Castlelake’s withdrawal. However, the confirmation of Apollo’s involvement led to a recovery in share prices as investors reacted positively to the news.