Apollo Global Management Acquires EasyJet for £5.7 Billion
The U.S. private equity firm has secured Europe's budget carrier in a £7.15-per-share deal after rival bidder Castlelake withdrew from the contest.
Apollo Global Management has reached an agreement to acquire EasyJet in a transaction valued at approximately £5.7 billion ($7.7 billion), bringing an end to a competitive bidding process that lasted three months, according to terms made public on Thursday.
The American private equity firm will pay £7.15 ($9.62) per share in cash for the low-cost carrier, which operates one of Europe's largest airline networks. EasyJet serves over 100 million passengers annually across a route map spanning 37 countries.
The deal was finalized after Castlelake, a competing U.S. investment firm, confirmed earlier Thursday that it would not submit a counteroffer. Industry observers note that Apollo's approach to structuring the acquisition—reportedly designed to navigate European regulations requiring local ownership stakes in airlines—could establish a template for future cross-border airline transactions involving overseas private equity.
Apollo has indicated its strategy centers on building upon EasyJet's current business trajectory rather than implementing a fundamental restructuring. The firm identified the carrier's loyalty program, ancillary revenue streams, and the rapidly expanding EasyJet Holidays division as central areas for investment and growth acceleration.
The acquisition marks a significant consolidation move in Europe's competitive low-cost carrier market, where airlines have been recovering from pandemic-era disruptions while managing evolving consumer demand patterns and operational cost pressures. The deal is expected to provide EasyJet with additional capital resources to pursue its growth objectives, particularly in the lucrative package holiday segment where the airline has been gaining market share.