EasyJet has agreed to a $6.7 billion (£5 billion) acquisition offer from U.S. private equity firm Castlelake.
The big picture: The agreement comes after EasyJet previously rejected four earlier takeover bids from Castlelake.
- EasyJet’s board is “minded to recommend” Castlelake’s £6.90-per-share offer to shareholders, with shares jumping nearly 10% on the London Stock Exchange after the announcement.
- Castlelake must submit a formal takeover bid by August 3 or withdraw its offer.
- Castlelake has expressed respect for EasyJet and intends to support the airline’s growth, focusing on fleet modernization for long-term competitiveness, efficiency, and sustainability.
Driving the news: Founded in 1995, EasyJet is a well-known U.K. budget airline with its main hub at London Gatwick Airport and has faced recent challenges like soaring jet fuel prices due to the Iran war.
- Castlelake, based in Minneapolis, manages about $37 billion in assets and leases a fleet of 375 planes to various airlines globally.