In a significant development for the European aviation sector, easyJet has finalized a £5.7 billion acquisition deal with Apollo Global Management, a US-based private equity firm. The agreement follows the withdrawal of Castlelake, a competing bidder, from the acquisition process. Apollo has agreed to purchase easyJet shares at £7.15 each, with the transaction anticipated to conclude by March 2027, contingent upon receiving the necessary regulatory approvals.
This deal marks the culmination of a competitive bidding war after easyJet initially leaned towards a potential sale to Castlelake. Apollo, however, enhanced its offer, leading to a strategic decision by Castlelake to step back from submitting a final bid. Under the new ownership structure, easyJet’s founder, Stelios Haji-Ioannou, along with his family, is set to maintain their current shareholding. To comply with European Union ownership regulations, Apollo’s stake in the airline will be limited to 49.9%, with a unique shareholding framework in place.
Apollo has expressed its commitment to preserving easyJet’s operational bases in both the UK and the European Union, aligning with the airline’s existing growth strategy. The private equity firm sees promising long-term potential in easyJet’s robust aviation network across Europe and the UK. This acquisition is designed to provide immediate value to shareholders while also acknowledging the airline’s strong future prospects.
The news of the Apollo deal comes after a volatile period for easyJet shares, which initially dropped sharply following Castlelake’s departure from the bidding. However, investor confidence was restored upon the confirmation of Apollo’s successful acquisition bid. EasyJet’s board has endorsed the offer, emphasizing the attractive and immediate value it presents to shareholders.