- Apollo has agreed to acquire EasyJet in a £5.7 billion deal after rival bidder Castlelake withdrew.
- EasyJet shareholders will receive £7.15 per share, with the airline's board recommending the offer.
- Founder Sir Stelios Haji-Ioannou and his family will remain long-term shareholders in the business.
Budget airline EasyJet is set to come under new ownership after agreeing to a £5.7 billion takeover by US investment firm Apollo, bringing an end to months of uncertainty over the future of one of Europe's largest low-cost carriers.
The agreement follows the withdrawal of rival bidder Castlelake, which had made several approaches to acquire the airline before deciding not to submit a final offer. With the competing bid off the table, Apollo's cash offer of £7.15 per share has secured the backing of EasyJet's board.
The takeover will see the London-listed airline become privately owned, while founder Sir Stelios Haji-Ioannou and his family, who own around 15 per cent of the company, will remain invested in the business.
A bidding battle comes to an end
EasyJet's future has been the subject of takeover speculation since May, when Castlelake first expressed interest in acquiring the airline. Initial proposals were rejected, with EasyJet reportedly arguing that the business was being undervalued.
In July, Castlelake appeared close to reaching an agreement with the airline after tabling an improved proposal. However, Apollo entered the race with a higher £5.7 billion offer, prompting the EasyJet board to indicate it was prepared to recommend the new bid.
After Castlelake formally withdrew from the contest, Apollo emerged as the sole bidder.
EasyJet Chairman Stephen Hester reportedly said Apollo's proposal appropriately recognised the value of the airline and offered shareholders immediate and certain value after the board carefully assessed the offer alongside the company's prospects as an independent business.
Apollo described EasyJet as "one of the most attractive businesses in the global aviation sector", reportedly citing its strong brand, extensive European network and long-term growth potential.
Founder stays on as new ownership begins
Founded by Sir Stelios Haji-Ioannou in 1995, EasyJet transformed European budget travel with its low-cost model, launching its first flights between Luton, Glasgow and Edinburgh before expanding rapidly across Europe.
The airline now employs more than 19,000 people and operates around 1,200 routes across 35 European countries, making it one of the region's largest carriers.
Sir Stelios reportedly welcomed Apollo's plans for the airline and said he was pleased with the firm's strategic intentions to create further growth. He added that his family intended to remain long-term major shareholders as EasyJet entered its next chapter under private ownership.
EasyJet Chief Executive Kenton Jarvis also welcomed the agreement, reportedly saying Apollo's experience in the aviation sector made it a strong partner for the business and its employees.
The acquisition comes after a competitive takeover process that had prompted some shareholders to hope a prolonged bidding war would push the offer price even higher. Instead, Apollo's successful bid brings certainty to the airline's ownership while giving the private equity firm control of one of Europe's best-known aviation brands.
