Marshall Group Sells Majority Stake to Hong Kong VC for $1.15 Billion

Hong Kong-based private equity firm HongShan Capital Group has agreed to acquire a majority stake in Marshall Group, makers of amplifiers that for decades have been a favorite among rock guitarists, in a deal valuing the company at 1.1 billion euros ($1.15 billion).

Under the deal, which needs regulatory approval in Europe, the Marshall family will retain “over 20%” ownership in the Stockholm, Sweden-based company. The investors divesting their stakes in the company include Swedish telecom Telia, private equity firms Altor and Time for Growth, as well as venture capital firm Zenith.

This will be the largest European investment to date for HSG, which also has offices in mainland China and London and lists TikTok owner ByteDance and the Chinese mega-retailer Alibaba in its portfolio.

Terry Marshall, a board member and co-founder of Marshall along with his dad Jim, expressed optimism about the partnership’s potential to further the legacy of Marshall’s pioneering sound.

“We are now over 60 years into our journey, and the pioneering sound of Marshall continues to resonate across the world,” said Marshall. “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.”

Established in 1962 in Hanwell, West London by Jim and Terry Marshall, Marshall Amplification swiftly built a loyal following by manufacturing larger-than-life amps for guitarists craving more muscle for their stage sound. Devotees of these high-wattage “Marshall stack” rigs over the years have included such guitar giants as Jimi Hendrix, Jimmy Page, Slash, Eric Clapton, Pete Townshend and Angus Young.

In 2023, Stockholm-based Zound Industries, known for their headphones and wireless speakers, acquired Marshall Amplification and rebranded it as The Marshall Group. The Marshall family retained a 24% stake in the company, with family heirs Terry and Victoria Marshall securing seats on the board of directors.

Today, the company still produces amps in the UK at their factory in Bletchley, Milton Keynes. It’s also about to introduce a new line of guitar pedals at this year’s NAMM tradeshow that it hopes will ” provide the unmistakable Marshall sound, no matter where you are.”

In early 2024, the company disclosed that a quarter of the Marshall Group’s sales come from headphones while 70% is derived from speakers and only 5% from amplifiers.

“Our mission is to support Marshall in unlocking its full potential by leveraging our expertise in digital channels and supply chain optimization,” said Taro Niggemann, managing director for Europe at HSG. “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.”

Jeremy de Maillard, CEO of Marshall Group, added: “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.”