Apollo’s £5.7bn easyJet buyout to generate £334m in advisory fees

Bankers and advisers involved in Apollo Global Management’s £5.7bn acquisition of easyJet are expected to receive approximately £334m in fees, making the transaction one of the UK’s most lucrative takeovers for dealmakers this year, according to a report by the Financial Times.

Apollo will pay approximately £280m in fees, including £190m associated with arranging acquisition financing, while easyJet will pay a further £54m.

Advisers to Apollo include Barclays, PJT Partners, Citigroup and law firm Paul Weiss, while easyJet’s advisers include Evercore, BNP Paribas, Panmure Liberum and Clifford Chance.

Apollo secured the acquisition after outbidding rival private credit manager Castlelake, which had previously been in negotiations with the airline.

The transaction will take easyJet private after more than two decades on the stock market, with Apollo planning to reposition the business towards higher-value travel and improve its financial performance.

The proposed ownership structure has also been revised to comply with EU aviation regulations requiring majority European ownership and control.

Under the revised arrangements, easyJet’s board will reportedly comprise of 10 directors, including four Apollo representatives and two appointed by existing shareholders.

Founder Sir Stelios Haji-Ioannou is expected to transfer his family’s existing 15% holding into the private company, giving the family a stake of between 45.1% and 49.9%.