EasyJet has finalized a £5.7 billion agreement to be taken over by the US-based private equity firm Apollo Global Management. The airline confirmed its acceptance of a firm offer at £7.15 per share. This brings an end to a heated bidding contest. Rival firm Castlelake withdrew just one day before a deadline for final proposals to be submitted. The deal had initially been proposed by Apollo. This followed its rival’s early lead in the process. It marks a definitive shift in the company’s ownership direction.
Apollo will hold a controlling stake; EU Trust retains 5%
Apollo has secured a 49.9% majority stake in the airline, while a designated EU Trust will maintain a 5% shareholding. This structure ensures compliance with European Union regulations on foreign ownership of airline companies, which restrict full foreign control. In addition, EasyJet’s founder, Stelios Haji-Ioannou, and his family will keep their shareholding in the new ownership model, preserving their stake and influence in the company’s future.
Apollo commits to retaining EasyJet’s UK and EU headquarters
Apollo has pledged to maintain the airline’s headquarters in the UK and European Union, underlining its commitment to the business’s current strategic direction. The private equity firm emphasized its plans to support the airline in pursuing long-term, sustainable growth. Alex van Hoek, who leads Apollo’s European private equity arm, lauded EasyJet for its strong brand identity, customer-focused approach, and its wide-reaching flight network across Europe.
Stephen Hester, the chairman of EasyJet, noted that the board carefully assessed the Apollo offer in the context of the company’s potential to operate independently. Kenton Jarvis, the airline’s chief executive, welcomed Apollo’s deep expertise in the aviation sector as a partner for driving growth and maintaining the airline’s high standards for customers. EasyJet’s stock price initially slumped by 10% following Castlelake’s decision to withdraw from the race but later recovered to climb 3% by the end of the day.
With Castlelake no longer in the mix, Apollo is now set to complete the acquisition. The firm will bring its financial backing and strategic vision to one of Europe’s best-known budget airline brands. Apollo’s offer represents an 81 per cent premium to the airline’s closing price before either party’s interest emerged, and a 22 per cent premium to Easyjet shares’ four-year average. Apollo has previously held stakes in low-cost carrier Aeromexico and Sun Country Airlines, which it listed on Nasdaq in 2021. Its private credit arm also has a large footprint in the aviation industry. PJT Partners, Barclays and Citigroup advised Apollo on the deal.