US private equity firm Apollo Global Management is set to acquire EasyJet in a deal valued at £5.7 billion, following the withdrawal of rival bidder Castlelake. The acquisition agreement, under which Apollo will pay £7.15 per share, is anticipated to be finalized by the end of March 2027, contingent on receiving the necessary approvals from regulatory bodies.
The bidding process for EasyJet took a competitive turn when Apollo raised its offer, leading to Castlelake’s eventual decision to exit the race without submitting a final bid. Initially, EasyJet had leaned towards a potential sale to Castlelake, but Apollo’s improved proposition changed the dynamics. Under the new ownership, EasyJet’s founder, Stelios Haji-Ioannou, and his family are expected to maintain their current shareholding, while Apollo’s ownership will be restricted to a maximum of 49.9%. This is part of a strategic structure to ensure compliance with European Union ownership regulations.
Apollo has pledged to uphold EasyJet’s current operational bases in the UK and European Union and to support the airline’s existing growth plans. The private equity firm has expressed its belief in the substantial long-term potential of EasyJet’s aviation network across Europe and the UK. This commitment is seen as a reassurance to stakeholders concerned about the airline’s future direction under new ownership.
EasyJet’s board has endorsed the deal, highlighting that it offers shareholders immediate and attractive financial returns while also acknowledging the airline’s robust position and growth potential. The confirmation of Apollo’s acquisition deal helped EasyJet’s shares rebound after they had experienced a sharp decline following Castlelake’s withdrawal from the bidding process.