easyJet announces “agreement in principle” on takeover offer from U.S. investment firm Castlelake

British low-cost carrier easyJet has announced that it has reached an “agreement in principle” on the key financial terms of a takeover proposal from U.S.-based investment firm Castlelake, in a deal that would value the airline at more than £5 billion (est. €5.8 billion).

The announcement, made on Sunday, marks the first official confirmation that the two parties have entered advanced discussions regarding a potential acquisition. While the agreement covers the principal financial terms, no definitive transaction has yet been concluded.

Castlelake, an American investment firm founded in 2005, manages approximately $38 billion in assets and has significant exposure to the aviation sector through aircraft leasing, financing, and other aerospace investments. The firm has been involved in numerous airline and aviation finance transactions over the past two decades.

If completed, the acquisition would represent one of the largest airline takeover deals in recent years and could lead to easyJet becoming privately owned after years of being listed on the London Stock Exchange.

At this stage, neither easyJet nor Castlelake has disclosed further details regarding the structure of the proposed transaction, regulatory approvals, or the expected timeline for completing the deal. The agreement remains subject to due diligence, final negotiations, and the execution of legally binding documentation.

EasyJet, one of Europe’s largest low-cost airlines, operates a fleet of more than 350 Airbus aircraft and serves hundreds of routes across Europe, North Africa and the Middle East. The airline has continued to recover from the COVID-19 pandemic and has reported improving financial performance amid strong demand for leisure travel.

Further announcements are expected if negotiations progress towards a binding agreement.