The short version
- Apollo Global Management has agreed to acquire EasyJet for £5.7 billion, offering shareholders £7.15 per share.
- The deal follows the withdrawal of rival bidder Castlelake, which had previously engaged in a contentious negotiation process with the airline.
- Apollo plans to maintain EasyJet's current strategy and promises no job cuts for at least twelve months post-acquisition.
EasyJet has agreed to be acquired by Apollo Global Management in a transaction valued at £5.7 billion, marking a significant shift in ownership for one of Europe’s largest low-cost carriers. The agreement comes after US investment firm Castlelake withdrew from the competition, effectively ending a bidding war that had created uncertainty around the airline’s future direction since late May.
The path to this conclusion was marked by friction between EasyJet and Castlelake. Initial approaches from the rival bidder were rejected by the carrier, which accused Castlelake of attempting to purchase the company at an undervalued price. Although the two parties reached a deal in principle in early July, Apollo intervened with a superior offer, prompting Castlelake to step aside.
Under the terms of the new agreement, EasyJet shareholders will receive £7.15 per share. Apollo has expressed strong support for the airline’s existing strategic framework, citing opportunities to accelerate both operational and commercial ambitions. Alex van Hoek, a partner at Apollo, described EasyJet as a leader in European aviation with a differentiated market position driven by its brand strength and extensive network.
Kenton Jarvis, the chief executive of EasyJet, welcomed the partnership, noting that Apollo’s experience in the aviation sector makes it a suitable steward for the business. He emphasized the firm’s commitment to both the company and its workforce, signaling continuity in leadership and operational philosophy during the transition period.
Regulatory considerations play a crucial role in structuring the deal. European Union rules require that airlines operating within the bloc have majority EU-based ownership. Apollo anticipates meeting this requirement by ensuring that the Haji-Ioannou family, along with other EU-based shareholders, retain approximately half of the business. Sir Stelios Haji-Ioannou, who founded EasyJet in 1995, stated that he and his family intend to remain long-term major shareholders.
Sir Stelios, whose family still owns around 15% of the company, expressed support for Apollo’s plans to drive growth. He highlighted the importance of this next chapter for the carrier, which has evolved from its origins as a budget service connecting UK airports to becoming a pan-European network operator. The airline currently employs more than 19,000 people and operates roughly 1,200 routes across 35 countries.
Regarding workforce stability, Apollo has committed to not cutting any staff for at least twelve months after the deal is finalized. However, the company acknowledged that some roles related to maintaining public-listed operations may be eliminated if EasyJet delists from the stock exchange. These reductions are expected to be limited in scope and confined to specific administrative areas necessary for a private entity.
The acquisition represents a major consolidation move in the European aviation sector. Apollo, which also owns The Restaurant Group, parent company of Wagamama, brings significant capital and operational expertise to the table. The deal underscores the increasing influence of private equity firms in shaping the future of traditional public companies, particularly in industries facing post-pandemic recovery challenges.
As the transaction moves forward, attention will turn to regulatory approvals and shareholder votes. The integration process will likely focus on leveraging Apollo’s resources to enhance EasyJet’s commercial capabilities while preserving its low-cost model. For passengers and employees alike, the immediate impact is expected to be minimal, with stability remaining a key priority for the new owners.
This development closes a chapter of uncertainty that began when Castlelake first signaled interest in May. The resolution allows EasyJet to proceed with a clear ownership structure, potentially enabling more decisive long-term investments in fleet expansion and route optimization. The market will now watch how Apollo balances its private equity objectives with the operational realities of running a major European airline.
Sources behind this briefing
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- BBC World↗EasyJet agrees to £5.7bn takeover by US firm
