„The board… is pleased to announce that it has reached an agreement on the recommended cash acquisition terms,“ said easyJet, the largest airline in Europe, in a statement.
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The deal, the company added, is expected to be completed by the end of the first quarter of next year.
easyJet’s headquarters will remain in Luton, known for its airport near London.
Earlier on Thursday, the US investment group Castlelake stated that it does not intend to improve its previous offer, although it had earlier proposed to acquire it for just over £5 billion.
Under UK takeover rules, both companies had until Friday to submit revised offers.
Castlelake confirms that, after careful consideration, it does not intend to submit a (better) offer for easyJet, the US group said in its statement on Thursday.
A strong partner
Last month, easyJet said that Apollo’s informal offer, also valued at £5.7 billion, provides shareholders with a “better outcome” compared to Castlelake’s offer.
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easyJet CEO Kenton Jarvis said on Thursday that Apollo’s “experience in the aviation sector makes it a strong partner.”
This US company manages assets worth more than $1 trillion worldwide and also invests in Aeromexico, Sun Country Airlines, and Atlas Air.
Apollo partner and head of the European private equity division Alex van Hoek said the company “is proud to be entrusted with playing a key role in supporting EasyJet Group in its next phase of growth and strengthening its important contribution to the European and UK aviation sectors.”
However, as a foreign entity, Apollo cannot immediately take full ownership of the airline due to UK and European regulations requiring that the controlling stake in companies be held and managed by regional citizens. The US company confirmed it will take necessary steps to find a European partner.
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