Castlelake Nears $6.7 Billion Take-Private Deal for EasyJet
U.S. private equity firm Castlelake is moving to acquire easyJet in a deal valuing the U.K. low-cost carrier at about $6.7 billion, marking a potential take-private of one of Europe’s largest budget airlines.
The two sides have reached an in-principle agreement after easyJet previously rejected four proposals, according to CBS News.
The airline said its board is "minded to recommend" the offer to shareholders, following an earlier bid from Castlelake that valued the company at £4.93 billion and was turned down, Reuters reported.
EasyJet operates across 38 European countries with a fleet of 355 aircraft serving more than 1,200 routes. Founder Stelios Haji-Ioannou, who no longer sits on the board, remains the company’s largest shareholder with roughly a 15% stake alongside his family, Reuters added.
The potential deal comes as the airline industry continues to grapple with elevated operating costs, including higher jet fuel prices linked to geopolitical tensions stemming from the war in Iran, which have weighed on margins across carriers.
Castlelake said it "emphasized its tremendous respect for easyJet and its people" and intends to support the airline’s "future growth and transformation to a stronger, more resilient European airline," including backing its fleet modernization program, which it views as central to long-term competitiveness and sustainability.
Under the current process, Castlelake has until Aug. 3 to submit a formal offer or walk away. If completed, the transaction would take the 31-year-old airline off public markets.
The deal structure is expected to be designed to navigate EU airline ownership rules. Castlelake has previously outlined a model in which it would hold 49% of the acquisition vehicle, with the remainder owned by EU nationals, including former Malaysia Airlines CEO Peter Bellew and aviation executive Mark Breen.
Minneapolis-based Castlelake oversees roughly $37 billion in assets and operates an aircraft leasing platform with a fleet of about 375 planes placed with airlines globally.
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