EasyJet announced a formal agreement to be acquired by US-based Apollo Global Management for £5.7bn in a transaction that will be priced at £7.15 per share. The deal advanced after rival bidder Castlelake withdrew from the acquisition process, declining to engage in further competitive bidding. Apollo had originally tabled the offer last month after EasyJet initially recommended acceptance of Castlelake’s proposal to its shareholders.
Under the acquisition structure, EasyJet founder Stelios Haji-Ioannou and his family will maintain their shareholding stake in the company following the transaction. Shareholders have been given the option to either sell their shares or transfer them into the new ownership structure, with the ability to retain up to 49.9% of their holdings. An EU Trust shareholding group will hold up to 5% of the company, a mechanism apparently designed to satisfy European Union requirements regarding foreign ownership of airlines. Apollo’s stake will be limited to 49.9% under the arrangement.
The completion of the transaction is projected to occur by the end of March 2027. Apollo has provided commitments to maintain EasyJet’s headquarters operations in the United Kingdom and European Union locations. The private equity firm has also stated its intention to support the airline’s existing strategic direction and back its efforts in achieving sustainable long-term growth.
EasyJet leadership expressed support for the transaction, with board chair Stephen Hester stating that while confidence remains high in the airline’s standalone prospects, the offer represents appropriate value recognition for shareholders. Chief Executive Kenton Jarvis noted that Apollo’s experience within the aviation sector positions it as an effective partner for pursuing expansion and delivering customer value. Following news of Castlelake’s withdrawal, EasyJet’s share price initially declined but recovered to trade up 3% by the close of trading on the announcement day.
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