EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a US private equity firm, following the withdrawal of Castlelake from the bidding process. Under the terms of the agreement, Apollo will purchase each easyJet share for £7.15. The transaction is anticipated to be finalized by March 2027, pending necessary approvals.
Initially, easyJet had leaned towards a potential sale to Castlelake. However, Apollo’s subsequent enhancement of its offer led to a competitive bidding environment. Castlelake eventually opted out of making a final bid. Despite the change in ownership, it is expected that easyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholdings. Apollo’s ownership stake will be limited to 49.9%, with a special shareholding structure put in place to ensure compliance with European Union ownership regulations.
Apollo has assured that easyJet’s headquarters will remain in both the UK and the European Union, and the firm has expressed its commitment to supporting the airline’s existing growth strategy. The private equity firm sees significant long-term opportunities within easyJet’s operations across Europe and the UK.
The board of easyJet has stated that Apollo’s offer provides shareholders with immediate and attractive value while acknowledging the airline’s robust position and future potential. This announcement comes at a time when easyJet’s shares saw a sharp decline after Castlelake’s withdrawal, only to recover following the confirmation of the deal with Apollo.