Apollo to take easyJet private in $7.7B deal

What's happened

Apollo has reached an agreement to acquire EasyJet at 715p a share, valuing the airline at about $7.7 billion. Castlelake has exited the bid, clearing the path for Apollo to take EasyJet private. The deal is expected to complete by Q1 2027, subject to shareholder and regulatory approvals.

What's behind the headline?

Market Context

• Apollo’s bid values EasyJet at about $7.7 billion, a premium to prior offers, signaling strong private equity conviction in European aviation post-pandemic.
• Castlelake’s withdrawal clears a straightforward path to a public-to-private transition, reducing near-term volatility for EasyJet and its shareholders.

Strategic Implications

• Apollo’s commitment to retaining EasyJet’s current strategy suggests continuity for customers and staff, while enabling accelerated growth plans.
• The structure with an EU Trust shareholding group indicates careful navigation of ownership rules, potentially limiting foreign control.

Potential Outcomes

• A successful close will likely stabilize EasyJet’s capital structure and could unlock new funding for network expansion and fleet renewal.
• Shareholders face an immediate, certain value through 715p per share, with integration risk manageable under Apollo’s ownership.

How we got here

Apollo has won the battle for EasyJet after Castlelake exits. The deal values EasyJet at roughly $7.7 billion, with Apollo aiming to retain UK and EU offices and pursue growth. Sir Stelios Haji-Ioannou and family will remain investors, and the structure seeks to satisfy EU foreign-ownership rules.

Our analysis

The Guardian (The Guardian) reports Apollo’s agreement to acquire EasyJet at 715p per share, with Castlelake exiting the bid. Independent notes Castlelake’s previous $5.5B offer and Apollo’s $7.15 offer, while CNBC confirms the $7.7B valuation and Q1 2027 completion target. CNBC also quotes Apollo and easyJet executives on the strategic fit and growth plans.

Go deeper

• Will the ownership structure affect staff pensions or job security at EasyJet?
• How will the EU ownership rules shape Apollo’s control over company decisions?
• When is shareholder approval expected, and what are the next regulatory hurdles?

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