Private equity giant Apollo Global Management has agreed to acquire EasyJet in a £5.7 billion deal after rival suitor Castlelake withdrew from the bidding process. The announcement follows Castlelake’s decision not to submit a formal offer by the Friday deadline, leaving Apollo as the sole bidder.
EasyJet confirmed it accepted Apollo’s £7.15-per-share offer, valuing the airline at £5.7 billion. The transaction, which requires shareholder approval, is expected to finalize in the first quarter of 2027.
Apollo’s takeover bid surpassed Castlelake’s previous £5.5 billion offer, which EasyJet’s board had initially deemed “minded to recommend” before rejecting four prior proposals as “highly opportunistic.” Apollo’s offer represents a 54% premium over EasyJet’s closing share price on February 27, the last trading day before the Middle East conflict began.
EasyJet’s leadership and founder respond
EasyJet’s chief executive, Kenton Jarvis, stated that Apollo’s “experience in the aviation sector makes it a strong partner” for the airline’s growth plans. He added that the deal would allow EasyJet to “continue delivering great value and service for customers.”
Sir Stelios Haji-Ioannou, EasyJet’s founder, expressed support for Apollo’s strategic intentions, saying the private equity firm’s plans “aim to create more growth” for the business. Haji-Ioannou and his family, who own approximately 15% of EasyJet, have indicated their backing for the deal.
Castlelake’s withdrawal and market reaction
Castlelake, a US investment firm, had engaged in prolonged negotiations with EasyJet’s board but ultimately decided not to proceed with a formal bid. In a statement, Castlelake thanked EasyJet’s leadership for their “constructive engagement” but did not provide further details on its decision.
EasyJet’s shares rose over 30% following Castlelake’s initial offer in early July and gained an additional 3% after the Apollo deal was announced. The stock had previously declined more than 6% before rebounding upon Apollo’s confirmation.
Apollo’s strategic vision for EasyJet
Apollo described EasyJet as a “leader in European aviation” with a “compelling customer proposition” and “expansive network.” The firm stated it is “highly supportive” of EasyJet’s existing strategy and sees “significant opportunity” to accelerate the airline’s operational and commercial ambitions.
The deal will take EasyJet private, removing it from public markets once completed. Apollo, which also owns The Restaurant Group (parent company of Wagamama), has not disclosed detailed restructuring plans for EasyJet beyond its stated commitment to growth and operational support.