U.S. private equity firm Apollo Global Management has agreed to acquire British budget carrier EasyJet in a deal valued at £5.7 billion or $7.67 billion.
Eagle Bidco, which is indirectly owned by Apollo Funds, will take over the now private company after beating out U.S. investment firm Castlelake, which withdrew its previous offer.
"The EasyJet Board has carefully evaluated the proposal from Apollo alongside EasyJet's standalone prospects. While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognizes the quality of the business we have built and delivers immediate, certain and attractive value for shareholders," EasyJet non-executive chair Stephen Hester said in a statement.
Added Apollo: "Private ownership would provide access to incremental capital and enable longer-term business and strategic planning, allowing management to invest with greater flexibility and pursue opportunities that may take longer to realize than is typically possible in the public markets."
"This approach is consistent with Apollo's long-term investment philosophy and experience supporting businesses through transformational growth," the firm stated.
Founded in 1995 and headquartered in Luton, England, EasyJet operates in more than three dozen countries, serving travelers mostly in Europe.
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