EasyJet is set to be acquired by the US private equity firm Apollo Global Management in a deal valued at £5.7 billion, following the withdrawal of its rival bidder, Castlelake. This acquisition agreement will see Apollo purchasing easyJet shares at £7.15 each, with the transaction anticipated to conclude by March 2027, pending regulatory approvals.
Initially, easyJet had been inclined towards a sale to Castlelake, but the landscape shifted when Apollo increased its offer, initiating a competitive bid atmosphere. With Castlelake opting not to present a final proposal, Apollo emerged as the frontrunner. Under the terms of the agreement, easyJet’s founder Stelios Haji-Ioannou along with his family are expected to maintain their current shareholdings, while Apollo’s ownership will be limited to a 49.9% stake to adhere to European Union ownership regulations through a distinct shareholding structure.
In its commitment to the airline’s continuity, Apollo has pledged to preserve easyJet’s headquarters in both the UK and the European Union, and to bolster its existing growth plans. The equity firm has recognized the extensive long-term growth opportunities within easyJet’s aviation network across Europe and the UK. This strategic move is seen as a nod to the potential for expansion in these markets.
The easyJet board has expressed that Apollo’s offer brings shareholders immediate and enticing value, while also acknowledging the robust future prospects of the airline. This announcement follows a period of volatility for easyJet shares, which experienced a sharp decline after Castlelake exited the bidding race, before rebounding in response to the confirmed agreement with Apollo.