In a significant development for the aviation industry, EasyJet has consented to a £5.7 billion acquisition by Apollo Global Management, a private equity firm based in the United States. This decision comes after Castlelake, another contender in the bidding war, opted out of the acquisition process. Apollo’s agreement to purchase EasyJet includes a payment of £7.15 per share, with the completion of the deal anticipated by March 2027, contingent upon receiving the necessary regulatory approvals.
Initially, EasyJet had shown a preference for a potential sale to Castlelake. However, as Apollo increased its offer, the bidding landscape became more competitive, eventually leading Castlelake to withdraw its final bid. Notably, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding under the new ownership framework. Apollo’s stake in the airline will be limited to 49.9%, adhering to a separate shareholding arrangement that ensures compliance with European Union ownership regulations.
Apollo Global Management has expressed its commitment to preserving EasyJet’s headquarters within the UK and the European Union, aligning with the airline’s existing growth strategies. The firm has identified substantial long-term growth potential in EasyJet’s network across Europe and the UK. The airline’s board has endorsed the offer, highlighting it as providing shareholders with compelling and immediate value while acknowledging EasyJet’s robust position and future growth prospects.
The announcement of Apollo’s acquisition offer follows a period of volatility in EasyJet’s stock market performance. Shares of the airline experienced a sharp decline after Castlelake announced its withdrawal from the bidding process. However, the confirmation of Apollo’s deal prompted a recovery in investor confidence, stabilizing share prices.