Apollo to acquire EasyJet for 5.7 billion pounds, fending off rival bidder

American private equity firm Apollo has reached an agreement to acquire the British low-cost carrier EasyJet for 5.7 billion pounds (approximately $247.5 billion NT). The deal was confirmed after a competing bidder, U.S. investment group Castlelake, withdrew its offer.

EasyJet's board announced that it has agreed to the proposed cash acquisition terms. The airline stated that the transaction is anticipated to conclude by the end of the first quarter of next year. EasyJet's operational base will continue to be in Luton, a town known for its proximity to London airports.

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Both boards are pleased to announce that they have reached agreement on the recommended cash acquisition terms and conditions.

Earlier, Castlelake had indicated it would not submit a higher bid, having previously proposed an offer slightly exceeding 5 billion pounds. EasyJet had previously signaled that Apollo's informal offer, also valued at 5.7 billion pounds, would provide a "more advantageous outcome" for its shareholders compared to Castlelake's proposal. EasyJet CEO Kenton Jarvis highlighted Apollo's "experience in the aviation sector" as making them a strong partner, noting the firm's global investments in airlines like Aeromexico, Sun Country Airlines, and Atlas Air.

The acquisition comes as EasyJet recently reported a significant drop in its third-quarter net profit, attributing it to soaring aviation fuel prices driven by the conflict in the Middle East. Pre-tax profit for the period between April and June fell 70% year-on-year to 85 million pounds.

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Apollo's experience in the aviation sector makes them a strong partner.