Apollo Wins £5.7B Battle for easyJet
Synopsis
The private equity firm's £7.15-a-share offer prevailed after Castlelake walked away rather than enter a bidding war.
EasyJet has agreed to a £5.7 billion takeover by U.S. based private equity firm Apollo Global Management, bringing an end to months of acquisition interest. The agreement follows the withdrawal of rival bidder Castlelake which opted not to submit a competing offer ahead of the takeover deadline.
Under the terms of the deal, Apollo will acquire the airline at £7.15 per share while easyJet founder Stelios Haji-Ioannou and his family will retain their shareholding in the new ownership structure.
To comply with European Union airline ownership rules, Apollo's stake will be capped at 49.9% with an EU Trust holding up to 5% of the company. The transaction is expected to close by March 2027, subject to regulatory and shareholder approvals.
Apollo said it intends to retain easyJet's UK and EU headquarters while supporting the airline's long-term growth strategy. The private equity firm also reaffirmed its commitment to preserving the carrier's customer-focused approach and expanding connectivity across Europe.
Apollo Commits to Supporting easyJet's Long-Term Growth Strategy
Apollo described easyJet as one of Europe's leading low-cost airlines with a strong brand and an extensive route network.
EasyJet’s Non-Executive Chair Stephen Hester said the board carefully assessed Apollo's proposal against the airline's standalone prospects before concluding that the offer delivered immediate and certain value for shareholders.
Chief Executive Kenton Jarvis added that Apollo's experience in the aviation sector would help accelerate the airline's growth plans while maintaining service quality.
Aviation M&A Activity Continues to Gather Pace
The acquisition comes as airlines continue to navigate rising operating costs, evolving travel demand and fleet investment requirements. According to easyJet's latest annual results, the airline carried more than 100 million passengers during the financial year which reflects continued recovery in European leisure and business travel.
The company operates a network of more than 1,000 routes across over 35 countries, making it one of Europe's largest short-haul carriers.
EasyJet's shares initially fell after Castlelake withdrew from the bidding process but recovered to trade above the day's opening level following confirmation of Apollo's offer. The deal highlights continued investor interest in established aviation businesses with strong market positions and long-term growth potential.
Source: The Guardian
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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