In a significant development for the airline industry, EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a private equity firm based in the United States. This decision follows the withdrawal of Castlelake, another contender in the acquisition race, which initially had the backing of EasyJet’s board before Apollo increased its bid. Under the terms of the agreement, Apollo will purchase EasyJet shares at £7.15 each, with the transaction anticipated to close by March 2027, pending regulatory approvals.
The acquisition deal stipulates that Stelios Haji-Ioannou, the founder of EasyJet, along with his family, will maintain their current shareholding. Apollo’s ownership will be limited to 49.9% to meet European Union regulations concerning airline ownership. The strategic structure is designed to aid EasyJet in adhering to these EU requirements. Apollo has expressed its commitment to keeping EasyJet’s operational headquarters in both the UK and the European Union, while also endorsing the airline’s existing growth initiatives.
With this takeover, Apollo sees promising long-term opportunities within EasyJet’s expansive aviation network across Europe and the UK. The private equity firm has pledged its support for the airline’s growth strategy, which aims to solidify its market position. EasyJet’s board has highlighted the deal as a beneficial move for shareholders, offering immediate financial value and acknowledging the airline’s robust future prospects.
Initially, EasyJet’s shares experienced a decline following Castlelake’s decision to exit the bidding process. However, investor confidence was restored with the confirmation of the Apollo agreement, leading to a recovery in share prices. This development marks a crucial step for EasyJet as it navigates a competitive and evolving aviation landscape.