easyJet sold to US investment group Apollo for £5.7bn
easyJet Group, which includes UK Low Cost Carrier (LCC) easyJet (U2/EZY), has agreed a deal for its sale to Apollo after rival Castlelake pulled out of the bidding war.
The sale, valued at £5.7bn (£7.15 per share), will see the US firm take control of the easyJet group which employs over 19,000 people and operates 1,200 routes across Europe with a fleet of over 356 Airbus aircraft.
In what will be a relief to current staff, Apollo said it was highly supportive of easyJets current existing strategy and business model and that the sale could help accelerate growth.
Alex van Hoek, partner and European private equity lead at Apollo said: “easyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand”
easyJet chief executive Kenton Jarvis added “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.”
The sale will now be subject to regulatory approval and will face European Union scrutiny which requires European airlines to majority owned by Europeans,
Founded in 1995 by Sir Stelios Haji-Ioannou, easyJet has grown from a small start-up operating just two leased Boeing 737 aircraft between London Luton and Scotland into one of Europe’s largest low-cost airlines.
The airline pioneered a no-frills business model in the UK, offering affordable fares by maximising aircraft utilisation, selling tickets directly to customers and operating a single aircraft type for many years.
Throughout the 2000s and 2010s, easyJet expanded rapidly across Europe through a combination of organic growth and acquisitions, including the purchase of GB Airways in 2008 and parts of Air Berlin’s operations in 2017.
Today, the airline operates a predominantly Airbus A320 Family fleet, serving hundreds of routes across more than 30 countries from major bases in the UK and continental Europe. Carrying tens of millions of passengers each year, easyJet has become one of the UK’s most recognisable airlines and remains a major player in the European short-haul market, while also investing in sustainability initiatives and next-generation aviation technologies.
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