EasyJet has entered into a £5.7 billion acquisition deal with Apollo Global Management, a US-based private equity firm, following the withdrawal of Castlelake from the bidding competition. The agreement values each easyJet share at £7.15, and the transaction is anticipated to conclude by the end of March 2027, pending necessary approvals.
Initially, easyJet had shown a preference for a potential sale to Castlelake. However, with Apollo increasing its bid, the situation evolved into a competitive bidding process. Ultimately, Castlelake opted not to present a final offer. Under the new ownership arrangement, easyJet’s founder, Stelios Haji-Ioannou, along with his family, is expected to maintain their current shareholding. Apollo’s ownership will be limited to 49.9%, with a specific shareholding configuration to ensure compliance with European Union ownership regulations.
Apollo has pledged to keep easyJet’s headquarters in both the UK and the European Union, while also supporting the airline’s current growth strategy. The private equity firm has expressed confidence in the long-term prospects of easyJet’s aviation network across Europe and the UK. This commitment underscores Apollo’s belief in the strategic importance of easyJet’s operations in these regions.
According to easyJet’s board, the offer from Apollo delivers immediate and compelling value to shareholders while acknowledging the airline’s robust position and future potential. The announcement comes in the wake of easyJet’s share price experiencing a sharp decline following Castlelake’s exit from the bidding. Nevertheless, the shares rebounded as investors reacted positively to the confirmed deal with Apollo.