EasyJet agrees £5.7bn Apollo takeover as Castlelake withdraws

EasyJet has agreed to a £5.7bn takeover by US private equity firm Apollo, after rival bidder Castlelake pulled out of the bidding battle.

Castlelake, which had made a series of offers for the airline, withdrew its bid, leaving Apollo's £7.15-per-share offer to win. That topped Castlelake's final proposal of £6.90. EasyJet had initially rebuffed Castlelake's advances, accusing the firm of trying to buy it "on the cheap." Ownership uncertainty had been building since late May, when Castlelake's interest first emerged.

EasyJet is one of Europe's largest airlines, employing more than 19,000 people and flying around 1,200 routes across 35 European countries. Founded by Sir Stelios Haji-Ioannou in 1995 to offer budget fares from the UK to Europe, it operated its first flights in November 1995, from Luton to Glasgow and Edinburgh, before launching international routes the following year.

Apollo said it was "highly supportive" of EasyJet's existing strategy and saw "a significant opportunity to accelerate the operational and commercial ambitions" of the group. Apollo's Alex van Hoek described EasyJet as a leader in European aviation with a strong brand. EasyJet chief executive Kenton Jarvis welcomed the deal, saying Apollo's aviation experience makes it a strong partner.