In a significant development for the British aviation industry, EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a prominent US private equity firm. This decision follows the withdrawal of another contender, Castlelake, which had previously been in competition for the airline. Apollo’s bid involves paying £7.15 per share of EasyJet stock, and the transaction is expected to be finalized by March 2027, contingent on receiving the necessary regulatory approvals.
Initially, EasyJet had shown a preference for a potential deal with Castlelake. However, when Apollo upped its bid, it sparked a competitive bidding scenario. Ultimately, Castlelake decided against submitting a final proposal, clearing the way for Apollo to proceed. Under the new ownership structure, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding. Apollo’s ownership stake will be limited to 49.9%, with a separate arrangement to ensure compliance with European Union ownership regulations.
Apollo has expressed its commitment to keeping EasyJet’s headquarters in both the UK and the European Union. The private equity firm has also pledged to support EasyJet’s existing growth strategy, indicating its belief in the long-term potential of the airline’s operations across Europe and the UK. This strategic acquisition highlights Apollo’s confidence in EasyJet’s future prospects in the aviation sector.
The board of EasyJet has characterized Apollo’s offer as providing immediate and attractive value for shareholders, while also acknowledging the strength and potential for growth that the airline continues to hold. This announcement followed a period of volatility in EasyJet’s share price, which had dropped sharply after Castlelake withdrew from the bidding process. However, the shares rebounded once the Apollo deal was confirmed, reflecting investor optimism regarding the airline’s future under new ownership.
