In a significant development for the aviation industry, EasyJet has agreed to a £5.7 billion acquisition by the US-based Apollo Global Management, marking the end of a competitive bidding process. This follows the withdrawal of Castlelake, a rival bidder, from the acquisition race. The agreed deal values EasyJet shares at £7.15 each, with completion expected by March 2027, pending necessary approvals.
The initial recommendation for a sale came in favor of Castlelake, but the landscape shifted when Apollo upped its offer, sparking a bidding war. Eventually, Castlelake chose not to proceed with a final bid, paving the way for Apollo’s successful takeover. Under the new ownership structure, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding. Meanwhile, Apollo’s ownership stake will be limited to 49.9%, aligning with a separate shareholding strategy to adhere to European Union ownership regulations.
In terms of operational strategy, Apollo has pledged to uphold EasyJet’s existing growth plans and maintain its headquarters in both the UK and the EU. The private equity firm is optimistic about the long-term growth prospects of EasyJet’s extensive aviation network across Europe and the UK. This commitment comes as a reassurance to stakeholders about the airline’s strategic direction under new ownership.
The EasyJet board has highlighted that Apollo’s offer delivers immediate and compelling value to shareholders while acknowledging the airline’s robust potential and future opportunities. The announcement of the deal initially saw EasyJet’s shares decline following Castlelake’s exit before they rebounded as investors reacted positively to the confirmed acquisition by Apollo.