EasyJet is set to be acquired by Apollo Global Management for £5.7 billion after US private equity firm outbid Castlelake, which withdrew from the competition. Apollo has agreed to purchase easyJet shares at £7.15 each, with the deal projected to finalize by March 2027, pending regulatory approvals.
The move comes after easyJet initially leaned towards Castlelake for a potential sale. However, Apollo’s improved offer led to a bidding war, ultimately concluding with Castlelake opting out of the race. Under the agreed terms, the founder of easyJet, Stelios Haji-Ioannou, along with his family, will retain their current shareholdings. Apollo’s ownership will be limited to 49.9%, ensuring compliance with European Union ownership rules through a specially designed shareholding framework.
Apollo has assured that it will maintain easyJet’s headquarters in the UK and the European Union. It also plans to support the airline’s current growth plans, highlighting the significant long-term potential it sees in easyJet’s network across Europe and the UK.
The board of easyJet expressed that Apollo’s offer delivers immediate and appealing value to shareholders, while acknowledging the airline’s strong position and promising future. This announcement follows a period of volatility in easyJet’s share prices, which dropped sharply when Castlelake exited the bidding but later rebounded following the confirmation of Apollo’s acquisition.