In a significant development, EasyJet has reached an agreement for a £5.7 billion acquisition by Apollo Global Management, a private equity firm based in the United States. This deal emerged after Castlelake, a rival bidder, opted out of the acquisition process. Under the finalized terms, Apollo will purchase EasyJet shares at £7.15 each, with the transaction anticipated to be completed by March 2027 pending all necessary approvals.
The competitive bidding unfolded after EasyJet initially leaned towards a potential acquisition by Castlelake. However, Apollo’s enhanced offer ultimately led the way, resulting in Castlelake’s decision to withdraw from the race. Notably, founder Stelios Haji-Ioannou and his family will maintain their current shareholding under the new ownership structure. The agreement ensures that Apollo’s stake remains capped at 49.9%, a strategic move designed to adhere to European Union ownership regulations through a distinct shareholding structure.
Apollo has pledged to uphold EasyJet’s operational bases in both the UK and the European Union, aligning with the airline’s existing growth strategy. The private equity firm has expressed confidence in the long-term potential of EasyJet’s aviation network across Europe and the UK. This commitment reflects Apollo’s strategic vision of leveraging EasyJet’s established position in the aviation market.
EasyJet’s board has endorsed the offer, highlighting that it provides shareholders with immediate and compelling value while acknowledging the airline’s robust future prospects. This sentiment underscores the board’s belief in the strategic and financial benefits of the deal, which they argue will strengthen EasyJet’s market standing.
Investor reactions have been notable; EasyJet’s shares initially experienced a sharp decline following Castlelake’s exit from the bid but rebounded as news of the confirmed deal with Apollo emerged. The market’s response indicates confidence in the partnership’s potential to enhance EasyJet’s operational and financial trajectory.