EasyJet agrees to £5.7bn takeover by US firm Apollo

EasyJet has agreed to be taken over by US private equity firm Apollo in a deal worth £5.7bn. The agreement was announced after Castlelake, another potential buyer, said it would not continue with its bid.

Apollo's offer of £7.15 per share beat Castlelake's final proposal of £6.90. EasyJet is one of Europe's largest airlines, with a workforce of more than 19,000 people and flights on about 1,200 routes serving 35 European countries.

The airline was established by Sir Stelios Haji-Ioannou in 1995 to provide low-cost fares between the UK and Europe. Its first services began in November 1995 from Luton to Glasgow and Edinburgh, with international flights introduced the following year.

In a statement, Apollo said it was "highly supportive" of EasyJet's current strategy, adding that there was "a significant opportunity to accelerate the operational and commercial ambitions" of the EasyJet Group. Alex van Hoek, partner and European private equity lead at Apollo, described EasyJet as a leader in European aviation, with a differentiated market position built on its customer offer, wide network and strong brand.

Kenton Jarvis, EasyJet's chief executive, responded by saying the airline welcomes Apollo's commitment to the business and its people, and believes the firm's experience in the aviation sector makes it a strong partner.