HongShan Capital Group, a Chinese investment firm, is nearing (update- now completed the deal) a deal to acquire iconic audio equipment maker Marshall Group for about $1.1 billion, according to people familiar with the matter.
UPDATE
It is now official!
“We’re thrilled to welcome HongShan Capital Group (HSG) as our new majority shareholder, joining the Marshall family and the team.
This partnership kicks off an exciting new chapter for our iconic brand, fueling global growth and innovation for years to come.
To all musicians and music lovers out there — thank you for being part of this journey. We look forward to sharing new and exciting products as we continue to build on the Marshall legacy.”
Jeremy de Maillard CEO
Martin Axhamre CFO & Deputy CEO
Official Marshall Statement
January 24, 2025 – Funds managed by HSG have entered into a definitive agreement to acquire a majority stake in Marshall Group in a deal valuing the company at 1.1 billion EUR. This transaction, which is subject to regulatory approvals, will mark HSG’s largest investment in Europe to date. The deal represents the next chapter for Marshall as the iconic brand continues to unlock its true potential.
The Marshall family will retain a meaningful stake of over 20 percent in the company under the terms of the deal. HSG will work closely with the Marshall family and the management team to strengthen the Marshall brand and fuel its sustainable and profitable growth.
Terry Marshall, Board member at Marshall Group, who founded the now legendary British brand with his father in 1962 comments: “We are now over 60 years into our journey, and the pioneering sound of Marshall continues to resonate across the world. Together with HSG and our team, we can further build on our history to amplify the love for music and the Marshall brand for decades to come.”
“Marshall is one of the world’s most iconic brands, firmly rooted in music culture. By building on this legacy, we are convinced that Marshall will strengthen its position as the go-to brand for guitarists and as the most exciting brand for music lovers globally. We are thrilled to partner with the Marshall family and the team at Marshall to write music history,” said Steve Jia, Partner at HSG.
“Our mission is to support Marshall in unlocking its full potential by leveraging our expertise in digital channels and supply chain optimization. We aim to help bring Marshall’s exceptional products to even more customers globally while embracing and celebrating the spirit that has defined the brand for generations,” said Taro Niggemann, Managing Director for Europe at HSG.
This investment builds upon HSG’s track record in Europe, following previous investments in companies such as AMI Paris.
Since the creation of the Marshall Group in 2023, which brought together the entire Marshall universe under one roof, the company has continued to innovate and grow, delivering iconic products for both musicians and music lovers.
Jeremy de Maillard, CEO of Marshall Group, declared: “This deal is a testament to our team’s dedication and exceptional talent in making our vision a reality. Together with HSG and the Marshall family, we have the perfect conditions to continue building on Marshall’s iconic status and unlocking our full potential across the world”.
Marshall is on a strong profitable growth trajectory, with revenue more than doubling from 2020 to 2024, reaching about 400M EUR.
Martin Axhamre, CFO & Deputy CEO of the Marshall Group, comments: “We already have a positive momentum with exciting plans for the future. Combined with this new strong ownership structure we will be able to invest for the long-term and accelerate even further”.
The major selling shareholders are Altor, Telia Company, Time for Growth and Zenith VC.
About HSG
HSG (HongShan Capital Group), formerly known as Sequoia China, is a leading venture capital and private equity firm investing globally in the technology, healthcare, and consumer sectors. With offices in Hong Kong, mainland China, London, Tokyo, and Singapore, HSG manages over USD 55 billion in assets across various funds for top institutional investors.
Founded in 2005, HSG has nurtured entrepreneurship and innovation, backing more than 1,500 companies with transformative technologies, disruptive business models, and high-growth potential. To date, more than 160 HSG portfolio companies have listed on public stock exchanges, while over 140 private portfolio companies have reached unicorn status.
Throughout the past two decades, HSG has evolved into a fully integrated investment platform spanning seed, venture, growth, buyout, and infrastructure investing, as well as public equities investment.
HSG is committed to helping founders and companies build legendary companies that endure while consistently generating superior returns for our limited partners. By partnering with HSG, companies benefit from HSG’s extensive resources, including a robust entrepreneurial community and industry expertise.
Marshall Group
Is HongShan Capital Group acquiring the iconic audio brand Marshall for $1.1 billion.?
Online rumors suggest they might be, as we reported last year, and now, a new online source says the sale is happening.
Marshall Group is a Stockholm-based company that was founded in 1962. Famous musicians such as Jimi Hendrix and Eric Clapton have used the company’s guitar amplifiers. Marshall Group also makes headphones and wireless speakers. The company has a presence in more than 90 markets.
HongShan Capital Group
HongShan Capital Group is a venture capital and private equity firm that has invested in companies such as Alibaba Group Holding, BYD, and ByteDance.
Zound Industries
The founding Marshall family may retain part of its stake in the business in any transaction. Closely held Swedish group Zound Industries acquired Marshall in 2023, while the founding Marshall family remained a shareholder. The transaction also included Natal Drums, Marshall Records, and the Marshall Live Agency. Later that year, private equity firm Altor Equity Partners bought a significant minority stake in the business.
Representatives for HongShan, Marshall Group, and Altor did not immediately respond to requests seeking comment.
Marshall For Sale?
This acquisition would be a significant coup for HongShan Capital Group, giving the firm a foothold in the global audio equipment market. Marshall Group is a well-known and respected brand, and its products are popular with musicians and consumers alike. The acquisition would also allow HongShan to expand its reach into new markets.
It will be interesting to see how this deal unfolds. If it goes through, it will significantly develop the audio equipment industry.
We will update this article as more news breaks on the story.
3 thoughts on “HongShan Capital Group Acquire Marshall for $1.1 Billion – It’s Official!”
Looking forward to trying out your new gear ,as I’m looking for a new amp.
What a shame, just to think of it wants to make me throw up. You sold us all to communists basterd’s. I think it is time I start looking for something that is not involved with communists. Just imagen, one day China will say ” NO more Rock and Roll! And that would be it! Stupid stupid and stupid.
Brad Nochta1
That is the real shame. I am Josie Catania of TRX Electronics Ltd, manufacturer of audio transformers. We have supplied Marshall Amplification with the original Dagnall designed audio transformers
for all their amplifiers that came out of the Marshall Milton Keynes facility in the UK for 13 years between 2009 and 2022. All these transformers carry the TRX logo on the label to proof what I’m stating.
Brexit and the sale to Zound Industries put a stop to our co-operation.
We can still support the various boutique vintage amplifier builders or spareparts garages with the Dagnall designed transformers for Marshall amps.