HongShan Capital nears $1.1bn acquisition of iconic audio brand Marshall

HongShan Capital Group, the private equity firm previously known as Sequoia China, is in advanced talks to acquire Marshall Group, the iconic audio equipment maker, for $1.1bn.

The Stockholm-based company is famous for its guitar amplifiers, used by legendary musicians such as Jimi Hendrix, Eric Clapton, and Lana Del Rey.

The founding Marshall family is expected to retain a minority stake as part of the deal, which could be finalised in the coming days. HongShan outbid competing private equity firms to become the preferred buyer, according to sources familiar with the matter. However, final details of the transaction are still being negotiated.

Marshall, originally founded in the UK in 1962, offers a range of audio products, including amplifiers, headphones, and wireless speakers. The company has a presence in over 90 markets. In 2023, Swedish firm Zound Industries acquired Marshall, which also includes Natal Drums, Marshall Records, and Marshall Live Agency. Later that year, Altor Equity Partners acquired a significant minority stake in the business.

HongShan Capital, founded in 2005, has backed over 1,500 companies, including Alibaba, BYD, and ByteDance. With this acquisition, HongShan is expanding its focus beyond China, following a trend among private equity firms seeking opportunities in Europe, Japan, and Southeast Asia.

This transaction highlights the continued appeal of iconic consumer brands in the private equity landscape, as firms like HongShan seek to capitalise on global market opportunities.

Source: SCMP

Can’t stop reading? Read more