On 8 October 2026, easyJet Chief Executive Officer Kenton Jarvis confirmed that Apollo Global Management is proceeding with its acquisition of easyJet plc, aiming to complete the transaction in early 2027. The formal transaction originated on 6 August 2026 when the easyJet board accepted a recommended cash offer of £7.15 per share from Eagle Bidco Ltd, a bidding vehicle controlled by Apollo-managed funds, according to the London Stock Exchange RNS filing on that date. The £5.7 billion equity valuation transfers control of a major European airline to private equity ownership.
The acquisition establishes how private market investors perceive European short-haul aviation as a sector ready for operational restructuring rather than simple capacity expansion. Legacy carriers face intense margin pressures from volatile fuel costs and stringent environmental regulations, making public market valuations historically depressed. Institutional capital targets this environment to execute fleet modernization and network optimization away from the quarterly earnings scrutiny of public equities, aiming for long-term yield improvements.
To comply with European Union and United Kingdom air carrier majority ownership regulations, Apollo capped its equity holding at 49.9 percent, leaving up to 5 percent in an EU management trust and the remainder with qualifying regional shareholders, as detailed by Financier Worldwide in November 2026. This ownership structure addresses strict airline licensing rules while securing financial control for the buyout fund. The arrangement opens a question regarding how a minority equity position functionally governs capital allocation and operational strategy over a large fleet.
Deal terms at a glance
The core transaction metrics are outlined in the London Stock Exchange RNS filing from 6 August 2026. Financial metrics rely on the specific offer terms documented in the regulatory announcement.
| Acquirer | Eagle Bidco Ltd (indirectly controlled by Apollo Global Management funds) |
| Target | easyJet plc |
| Offer Price | £7.15 (715 pence) per share in cash |
| Implied Equity Value | Approximately £5.7 billion |
| Implied Enterprise Value | Not disclosed in the summary release |
| Consideration | Cash, with an unlisted rollover / stub equity alternative for eligible shareholders |
| Premium | 81 percent premium to the £3.94 closing price on 28 May 2026 (unaffected date); 22 percent premium to the £5.88 closing price on 10 June 2025 (four-year peak) |
| Financing | Backed by Apollo-managed funds alongside debt arrangements; full facility breakdowns and debt underwriting totals are not disclosed |
| Conditions | Shareholder approval at court and general meetings, UK court sanction, UK and EU aviation regulatory clearance |
| Expected Timetable | Completion targeted for early 2027 (calendar Q1) |
Advisers
Both the acquiring consortium and the competing bidders retained extensive legal and financial advisory teams to navigate the acquisition process. Apollo Global Management secured legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison, according to a 10 July 2026 report by The Global Legal Post. Barclays provided financial advisory and exempt market making services for Apollo, as confirmed in the London Stock Exchange RNS announcement on 6 August 2026.
For the target company, easyJet retained Clifford Chance as its legal counsel, reported by The Global Legal Post on 10 July 2026. The financial advisers for easyJet are not disclosed in the initial legal notices.
During the earlier bidding phase, rival suitor Castlelake retained Slaughter and May alongside Milbank for legal counsel, as documented by The Global Legal Post on 10 July 2026. Financial advisers for Castlelake are not disclosed.
How the deal came about
The transaction emerged after a competitive bidding process involving multiple private equity participants. Minneapolis-based investment firm Castlelake initiated the acquisition interest, submitting five separate proposals over a span of several months, according to Financier Worldwide in November 2026. Castlelake initially offered 625 pence per share, which implied a £4.7 billion valuation. After initial rejections, Castlelake eventually reached an agreement in principle with the easyJet board at 690 pence per share, establishing an implied equity value of approximately £5.5 billion, as detailed by Hargreaves Lansdown on 9 July 2026.
Apollo Global Management intervened following this agreement in principle. Apollo presented a superior offer of 715 pence per share, valuing the equity at £5.7 billion. The easyJet board subsequently evaluated the competing proposals. Castlelake formally withdrew from the process on 6 August 2026, just prior to the final Takeover Code deadline, leaving Apollo as the sole remaining bidder, according to The Guardian on 6 August 2026. The easyJet board formally recommended the Apollo offer through a recommended cash offer announcement via the London Stock Exchange RNS on 6 August 2026.
A central component of the successful Apollo bid involved securing the support of the founding family. easyJet founder Sir Stelios Haji-Ioannou and his family opted to roll their holding into the acquiring vehicle rather than cashing out entirely. The family will retain board representation following the transaction, as reported by Bloomberg News on 8 October 2026 and The Guardian on 6 August 2026.
Valuation and comparables
The £7.15 per share cash offer establishes specific valuation parameters for the airline. The purchase price values easyJet at approximately 4.0 times lease-adjusted FY2025 earnings before interest, taxes, depreciation, and amortization (EBITDA), and implies a price-to-earnings (P/E) multiple of approximately 10.6 times, according to data from The Baratelli Institute and Bloomberg Data published on 7 August 2026. Specific enterprise value to EBITDA multiples were not disclosed in the 6 August 2026 regulatory announcement on the London Stock Exchange.
The offer delivers an 81 percent premium to easyJet’s closing price of £3.94 on the unaffected date of 28 May 2026. The price also provides a 22 percent premium to the airline’s four-year peak closing price of £5.88 recorded on 10 June 2025. Exact comparable transactions with their specific multiples in the European aviation sector are not disclosed in the primary regulatory filings or immediate financial reporting surrounding this transaction.
Financing and structure
Apollo structured the transaction as a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act 2006, according to the 6 August 2026 London Stock Exchange RNS. The deal includes an unlisted rollover and stub equity alternative, which permits eligible shareholders to roll their current holdings into Eagle Bidco Ltd, the acquiring vehicle.
Acquisition financing relies on capital provided by Apollo-managed funds alongside specific debt arrangements. Full facility breakdowns, interest rate terms, and specific debt underwriting totals are not disclosed in the summary release from 6 August 2026.
The ownership structure incorporates strict mechanisms to comply with European Union and United Kingdom air carrier majority ownership and control requirements. Apollo’s direct equity holding is capped at 49.9 percent, according to The Guardian on 6 August 2026. Up to 5 percent of the equity will be held by an EU management trust, with the remaining balance held by European and UK qualifying shareholders, as reported by Financier Worldwide in November 2026. This complex ownership distribution prevents the airline from losing its regional operating licenses under current aviation laws.
Risks, conditions and key dates
The acquisition depends on several regulatory and structural requirements before completion. The transaction timeline includes specific dates established by the Takeover Panel and the UK courts.
- 6 August 2026: The easyJet board and Apollo announced the formal offer agreement via the London Stock Exchange RNS.
- 25 August 2026: Sharecast.com reported that regulatory conditions require UK court sanction and clearance from both UK and EU aviation regulatory authorities.
- 15 October 2026: The Takeover Panel granted an extension for the publication of the scheme document, originally subject to a 28-day deadline, to facilitate ongoing regulatory discussions, according to Bloomberg News on 8 October 2026 and Sharecast.com on 25 August 2026.
- Mid-November 2026: easyJet plans to hold the general and court meetings for requisite shareholder approval, as reported by Sharecast.com on 25 August 2026.
- Early 2027: The transaction is expected to close by the end of calendar Q1 2027, according to Bloomberg News on 8 October 2026 and Financier Worldwide in November 2026.
Where reports disagree
Financial publishers maintain different figures regarding the US dollar equivalent of the transaction and the exact size of the founder’s shareholding.
Reuters reported the transaction’s US dollar valuation at $7.7 billion based on exchange rates at the time of the bid announcement on 6 August 2026. Bloomberg News and Quartz reported the US dollar valuation at $7.5 billion in subsequent coverage on 8 October 2026.
Travel Weekly and Financier Worldwide reported the shareholding size of founder Sir Stelios Haji-Ioannou and his family as approximately 15 percent in articles published on 6 August 2026 and November 2026, respectively. Bloomberg News and Quartz reported the family’s shareholding size precisely at 15.3 percent on 8 October 2026.
Sources
Company and regulator filings
Press and analysis
- Quartz, easyJet Apollo Takeover Completion 2027
- Private Equity Wire, Apollo’s £5.7bn easyJet Takeover Expected to Close Early Next Year
- The Guardian, easyJet Agrees Takeover Private Equity Firm Apollo Global Management
- Financier Worldwide, Apollo Agrees £5.7bn Acquisition of easyJet as Takeover Advances
- Hargreaves Lansdown, easyJet Announcement: Apollo Enters the Bidding War
- The Global Legal Post, Paul Weiss and Clifford Chance in as Apollo Gatecrashes easyJet Sale with Surprise £5.7bn Takeover Offer
- Sharecast, easyJet Apollo Extend Offer Deadline as Regulator Talks Continue
- Euronext, easyJet’s Flight Path Airline Disruptor US Led Apollo Takeover
- Travel Weekly, easyJet Board Accepts US Investment Fund Apollo’s Takeover Bid
Facts as of 10 October 2026.
