In a significant development within the airline industry, EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a prominent US private equity firm. This decision follows the withdrawal of rival bidder Castlelake from the competitive acquisition process. Under the terms of the agreement, Apollo will acquire EasyJet at a rate of £7.15 per share, with the transaction anticipated to conclude by the end of March 2027, pending regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake. However, the scenario changed when Apollo presented an increased bid, igniting a competitive bidding war. Castlelake subsequently opted out of submitting a final offer, paving the way for Apollo to secure the deal. Despite the change in ownership, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will continue to maintain their current shareholding within the new ownership framework.
To adhere to European Union ownership guidelines, Apollo’s stake in EasyJet will be limited to 49.9%. The acquisition plan includes a separate shareholding structure designed to ensure compliance with these requirements. Furthermore, Apollo has committed to preserving EasyJet’s operational bases in both the United Kingdom and the European Union, while also endorsing the airline’s current growth strategy. The private equity firm has expressed confidence in the long-term potential of EasyJet’s aviation network across Europe and the UK.
The board of EasyJet has expressed that Apollo’s offer presents shareholders with immediate and attractive value, reflecting both the airline’s current strength and its future prospects. This announcement follows a period of volatility for EasyJet’s shares, which experienced a sharp decline after Castlelake’s withdrawal. However, shares rebounded as investors reacted positively to the confirmation of the Apollo deal.