British airline EasyJet is set to be acquired by the American private equity firm Apollo Global Management in a deal valued at £5.7 billion. This development follows the withdrawal of Castlelake, another potential acquirer, from the bidding process. Under the terms of the agreement, Apollo will purchase EasyJet shares at £7.15 each. The transaction is anticipated to conclude by March 2027, pending regulatory approvals.
Initially, EasyJet had been leaning towards a sale to Castlelake, but Apollo’s decision to enhance its bid led to a competitive atmosphere. Despite the competition, Castlelake ultimately opted out of making a final offer. The airline’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding, while Apollo’s ownership will be restricted to 49.9%. This arrangement includes a separate shareholding structure to ensure compliance with European Union ownership regulations.
Apollo has pledged to keep EasyJet’s headquarters in both the UK and the EU, aligning with the airline’s existing growth strategy. The private equity firm has expressed confidence in the long-term potential of EasyJet’s operations within the European and UK aviation sectors. By retaining these headquarters, Apollo aims to support EasyJet’s strategic objectives and bolster its market presence.
The EasyJet board has endorsed Apollo’s offer, highlighting the immediate and appealing value it provides to shareholders, while acknowledging the airline’s robust prospects. The announcement of the acquisition followed a period of volatility in EasyJet’s stock, which dropped significantly after Castlelake’s exit from the bidding process. However, the confirmation of Apollo’s deal helped the shares recover as investors reacted positively to the news.