EasyJet has finalized a £5.7 billion acquisition deal with the American private equity firm Apollo Global Management, following the exit of Castlelake from the bidding process. Apollo’s offer values easyJet shares at £7.15 each, with the transaction slated for completion by March 2027, contingent on receiving necessary approvals.
Initially, easyJet had leaned towards a sale to Castlelake, but Apollo’s enhanced offer sparked a competitive bidding scenario. Castlelake eventually opted out, leaving Apollo as the prevailing bidder. Under the new ownership arrangement, easyJet’s founder Stelios Haji-Ioannou and his family will maintain their current shareholding. Apollo will hold a maximum stake of 49.9%, adhering to a specific shareholding structure aimed at meeting European Union ownership regulations.
Apollo has pledged to keep easyJet’s headquarters in the UK and the European Union, while also supporting the airline’s current growth plans. The private equity firm expressed confidence in the long-term growth prospects of easyJet’s aviation network across Europe and the UK.
According to easyJet’s board, the agreement offers shareholders an immediate substantial value, while also acknowledging the robust potential of the airline’s future operations. The announcement of the deal follows a period of volatility in easyJet’s share price, which initially dropped sharply after Castlelake’s withdrawal but rebounded as investors reacted positively to the confirmed Apollo acquisition.