In a significant corporate move, EasyJet has finalized a £5.7 billion acquisition deal with Apollo Global Management, a notable US private equity firm. This agreement follows the withdrawal of Castlelake, another contender in the acquisition race, which initially had easyJet’s favor for a potential sale. Apollo’s successful bid will see them paying £7.15 for each easyJet share, with the transaction expected to finalize by March 2027, pending necessary regulatory approvals.
The intense bidding process heated up after Apollo decided to increase its offer, overshadowing Castlelake’s initial proposal. Despite Castlelake being a frontrunner, it ultimately opted out of making a final offer, paving the way for Apollo’s successful takeover. Under the new arrangement, easyJet’s founder Stelios Haji-Ioannou and his family are anticipated to maintain their current shareholdings. Apollo’s ownership will be limited to a 49.9% stake, a strategic decision ensuring compliance with European Union ownership regulations through a separate shareholding structure.
Apollo has pledged to uphold easyJet’s existing growth strategies and maintain its headquarters in both the UK and European Union. The firm expresses confidence in the long-term growth potential of easyJet’s aviation network across Europe and the UK. This commitment comes as a reassurance to stakeholders about the continuity of the airline’s operations and strategic direction under new ownership.
The easyJet board has endorsed the Apollo offer as it provides immediate value to shareholders while acknowledging the airline’s robust prospects. This announcement follows a turbulent period for easyJet’s stock, which experienced a sharp decline after Castlelake’s exit from the bidding but later rebounded with the confirmation of Apollo’s deal. The takeover is seen not only as a financial boost but also as a strategic alignment with Apollo’s vision for easyJet’s future in the competitive aviation market.