Apollo Set For $7.7B EasyJet Deal As Castlelake Walks Away

EasyJet and U.S. private equity firm Apollo Global Management have reached agreement on a £5.7 billion ($7.7 billion) deal to buy the UK LCC, in a move supported by major shareholder and founder Stelios Haji-Ioannou, after rival bidder Castlelake walked away.

“The boards of Bidco and EasyJet are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of EasyJet,” the parties said. Bidco is indirectly owned by Apollo.

The deal, set at £7.15 per share, values EasyJet at around £5.7 billion.

Separately, Castlelake, which had initiated the bidding process when it made an unsolicited offer for the carrier in June, issued a statement on Aug. 6: “Further to the joint announcement made by EasyJet and Castlelake on July 5, 2026, regarding a possible offer for EasyJet, Castlelake confirms that, following careful consideration, it does not intend to make an offer for EasyJet.”

Stelios Haji-Ioannou, EasyJet founder and major shareholder along with his family, said they had “provided irrevocable undertakings to an affiliate of Apollo to support the transaction and to elect for the unlisted share alternative in respect of their entire beneficial holdings of EasyJet shares ... Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the EasyJet board.”

Haji-Ioannou said he was pleased with Apollo’s strategic intentions for the EasyJet business, which aim to create more growth.

“The fact that Apollo, as one of the most well-resourced and experienced institutional investors in the world, has decided to back and grow EasyJet, the leading member of the Easy family of brands, is testament to the strength of the Easy brand and the business model of EasyGroup Ltd.,” he said.

Haji-Ioannou added that he and his family intend to remain invested as long-term major shareholders of EasyJet.

After initially rejecting four separate bids made by Castlelake, saying they undervalued the airline and were opportunistic, given the airline’s temporarily depressed share price linked to the Middle East crisis, EasyJet’s board on July 4 eventually recommended accepting Castlelake’s fifth offer, at £6.90 per share.

However, on July 10, the LCC’s board switched to recommending an offer made by Apollo at £7.15 per share.

EasyJet then requested, and was granted by financial authorities, an extension to Castlelake’s bid deadline, meaning both would-be investors had the same deadline, of 5.00 pm on Aug. 7, to either make a firm bid for the LCC or walk away.

EasyJet’s slot portfolio at slot-constrained European airports, as well as its strong market position and Airbus fleet and orderbook, have made it an attractive target for investors.

Speculation about the deal and its impact on the European airline landscape has centered on whether a would-be buyer would keep the business intact or sell off parts of it.