US private equity firm Apollo Global Management is set to acquire EasyJet in a deal valued at £5.7 billion, following the withdrawal of Castlelake from the bidding process. Under the terms of the agreement, Apollo will purchase EasyJet shares at £7.15 each. This transaction, pending regulatory approvals, is anticipated to conclude by March 2027.
The acquisition marks the culmination of a competitive bidding scenario in which EasyJet initially leaned towards a sale to Castlelake. However, Apollo’s enhanced offer changed the dynamics, leading to Castlelake’s decision to retract from the competition without making a final bid.
Founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholding in EasyJet despite the new ownership structure. Apollo’s stake will be limited to 49.9%, with an additional arrangement in place to ensure adherence to European Union ownership regulations. The private equity firm has expressed intentions to uphold EasyJet’s UK and European Union headquarters and to back the airline’s existing plans for growth.
Apollo has identified substantial long-term potential within EasyJet’s aviation network in Europe and the UK. Meanwhile, EasyJet’s board has endorsed the offer, highlighting that it provides shareholders with immediate value while acknowledging the airline’s robust prospects. The announcement followed a significant drop in EasyJet’s share price after Castlelake exited the bidding, though shares rebounded upon confirmation of the Apollo deal.