In a significant move within the aviation industry, easyJet has consented to a £5.7 billion acquisition by Apollo Global Management, a private equity firm based in the United States. This agreement comes after Castlelake, another potential buyer, stepped out of the competition for the airline. According to the deal, Apollo is set to purchase easyJet shares at £7.15 each, with the transaction expected to conclude by March 2027, pending the necessary regulatory approvals.
The acquisition journey began with easyJet initially leaning towards Castlelake’s proposal before Apollo heightened its offer, igniting a competitive bidding war. Eventually, Castlelake chose not to proceed with a final offer, paving the way for Apollo’s successful bid. An important aspect of this acquisition is that easyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their shareholding under the new ownership. Apollo will limit its stake to 49.9% to ensure compliance with European Union ownership regulations, implementing a specific shareholding framework for this purpose.
Apollo has expressed its commitment to preserving easyJet’s existing UK and European Union headquarters and has vowed to support the airline’s current growth strategy. The firm sees considerable long-term potential in easyJet’s network across Europe and the UK. This strategic outlook aligns with easyJet’s future ambitions, as the airline seeks to strengthen its position in the competitive aviation market.
From a shareholder perspective, easyJet’s board has endorsed the Apollo offer, highlighting that it presents shareholders with immediate and substantial value while also recognizing the airline’s robust future prospects. The announcement of the deal follows a period of volatility for easyJet’s shares, which initially experienced a sharp decline after Castlelake exited the bidding process. However, confidence returned to the market as investors responded positively to the confirmed agreement with Apollo, stabilizing the airline’s stock value.