Apollo to acquire easyJet for $7.7 billion and take it private

Private equity firm Apollo Global Management will acquire easyJet in a deal valued at $7.7 billion. The acquisition is moving forward after competing investment firm Castlelake withdrew its bid. Consequently, Apollo is expected to take the British low-cost carrier private following the completion of the deal in the first quarter of next year.

Earlier today, Castlelake notified the London Stock Exchange that after a thorough review, it had decided to withdraw its offer for the company. Under the terms of the agreement with Apollo, easyJet investors will receive £7.15 ($9.63) per share, a sum 54% higher than the closing price on February 27, the last business day before the outbreak of the war in Iran, which caused disruptions in the global aviation industry.

Apollo submitted its bid for the airline last month, just days after a deal in principle had been reached to sell to Castlelake for $7.3 billion. This was an improvement over an initial offer of $6.64 billion submitted by Castlelake and rejected by easyJet in June.

The company, founded 31 years ago, is considered an attractive acquisition target for private equity firms, partly because it holds landing slots at major European airports in cities such as London, Paris, and Geneva.

"We welcome Apollo's commitment to our business and our employees, and believe their experience in the aviation industry makes them a strong partner for easyJet as we accelerate our growth plans and continue to deliver good value and service to our customers," said Kenton Jarvis, the airline's CEO.

Apollo stated that easyJet is a leader in the European aviation industry. "Apollo supports easyJet's commitment to increasing connectivity for passengers across Europe and the UK and the important role of its employees in customer service."

easyJet is one of the largest airlines in Europe, operating approximately 1,200 routes in 35 countries across Europe. The company employs more than 19,000 people.