EasyJet has entered into a £5.7 billion acquisition agreement with the US private equity firm Apollo Global Management, following the withdrawal of its competitor, Castlelake, from the bidding process. Apollo has agreed to pay £7.15 per share, with the transaction anticipated to conclude by March 2027, pending necessary approvals. This development came after easyJet initially signaled a preference for Castlelake’s offer, only for Apollo to up its bid, sparking a competitive clash. Eventually, Castlelake opted not to proceed with a final offer.
Under the new ownership, easyJet’s founder, Stelios Haji-Ioannou, and his family are expected to maintain their current shareholdings. Apollo’s ownership will be limited to a 49.9% stake, with a tailored shareholding structure in place to ensure compliance with European Union ownership regulations. Apollo has also pledged to retain easyJet’s headquarters in the UK and EU, while supporting the airline’s current growth and expansion strategies, viewing substantial long-term growth potential in its European and UK aviation networks.
The agreement is seen as providing immediate and attractive value to shareholders, according to easyJet’s board. It also acknowledges the airline’s robust position and promising future. The deal announcement followed a period of volatility, marked by a sharp decline in easyJet’s share prices after Castlelake’s exit, which subsequently rebounded upon news of the confirmed agreement with Apollo.
This acquisition highlights Apollo’s strategic interest in capitalizing on easyJet’s established market presence and network, as the private equity firm aims to bolster the airline’s competitive edge within the aviation sector. The agreed terms aim to balance investor interests while facilitating easyJet’s compliance with European regulations, ensuring a smooth transition under Apollo’s partial ownership.