Apollo agrees £5.7bn acquisition of easyJet as takeover advances

November 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

November 2026 Issue

Following months of uncertainty over its future, easyJet, one of Europe’s largest low-cost airlines, has agreed to be acquired by private equity (PE) firm Apollo Global Management in a deal valued at approximately £5.7bn ($7.7bn).

The transaction, which is expected to complete by the end of March 2027, will see Apollo acquire the company after overcoming competition from rival investor Castlelake. Castlelake withdrew from the process in early August after submitting five separate bids during July. The formal agreement was reached just 24 hours before the deadline for final bids, with Castlelake ultimately deciding not to engage in a bidding war.

Apollo said it intends to accelerate easyJet’s commercial ambitions under private ownership, including expansion of its holidays business. The firm has also committed to retaining easyJet’s UK and EU headquarters.

The £7.15-per-share offer represents a premium of around 81 percent to easyJet’s closing share price of £3.94 on 28 May, the final trading day before Castlelake’s interest became public.

Under the agreement, airline founder Sir Stelios Haji-Ioannou and his family will retain an interest in the new ownership structure. Existing shareholders will have the option of either selling their shares for cash or exchanging them for shares in the new parent company, subject to an overall cap of 49.9 percent.

An EU management trust will hold up to 5 percent, while Apollo-managed funds will own the remaining shares, subject to regulatory limits. The structure is intended to satisfy EU airline ownership requirements, as easyJet’s flying rights within the bloc depend on the carrier remaining majority owned and controlled by EU interests.

Since the takeover announcement, easyJet and Apollo have agreed an extension to the deadline for publication of the scheme document, which is now expected by 15 October 2026. Shareholder and court approval processes are expected to follow later in the year, with completion still targeted for the first quarter of 2027.

“Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board,” said Sir Haji-Ioannou. “I embarked on the journey of creating the easy family of brands in 1994 when I was 27 years old, starting with easyJet. In 2000, I floated easyJet plc on the London Stock Exchange in order to fund an expansion of the fleet, which has grown from 19 aircraft to 356 as at 31 March 2026.”

Sir Stelios welcomed Apollo’s growth plans for easyJet, describing them as validation of the easy brand’s strength, while confirming his family’s long-term investment.

“EasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand. Apollo strongly supports easyJet’s commitment to enhancing the connectivity of travellers throughout Europe and the UK and the important role that its employees play in serving customers,” said Alex van Hoek, European PE lead at Apollo.

“The easyJet board has carefully evaluated the proposal from Apollo alongside easyJet’s standalone prospects,” said Stephen Hester, chair of easyJet. “While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders.”

“We welcome Apollo’s commitment to our business and our people, and believe that its experience in the aviation sector makes it a strong partner for easyJet as we accelerate our growth plans and continue to deliver great value and service for our customers,” said Kenton Jarvis, chief executive of easyJet.

As easyJet enters a new ownership chapter, Apollo aims to accelerate growth while preserving the airline’s market position and brand strength.

Richard Summerfield