Marshall Group has sold a majority stake to HongShan Capital Group. Photo Credit: Adam Tagarro
Marshall Group officially has a new owner: HongShan Capital Group (HSG), which has acquired a majority interest in the “audio, tech and design powerhouse” at a $1.16 billion (€1.1 billion) valuation.
Stockholm-based Marshall and Hong Kong-headquartered HongShan (formerly Sequoia China) quietly announced the acquisition in a brief release. Still subject to regulatory approval, the transaction will see the Marshall family retain about 20% of the business.
But existing stakeholders including Altor, Telia, Time for Growth, and Zenith VC (which invested in 2016) are cashing out of the 63-year-old company. And per HSG, which owns pieces of Alibaba, ByteDance, and a multitude of others, the play is its largest in Europe thus far.
“This deal is a testament to our team’s dedication and exceptional talent in making our vision a reality,” added Marshall Group CEO Jeremy de Maillard. “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.”
In remarks of his own, Marshall board member and co-founder Terry Marshall indicated that the deal will enable his company to “build on our history to amplify the love for music and the Marshall brand for decades to come.”
Meanwhile, with the benefit of hindsight, we can see that the sale was perhaps years in the making for Marshall, which has approximately 800 employees.
First, the business only started grouping the whole of its operations – the core amplifier division as well as units responsible for Bluetooth speakers, headphones, artist services (including an active label), and different offerings – in 2023.
Next, Marshall emphasized that its revenue had more than doubled across 2020 and 2024 to north of $420 million/€400 million. And in a brief release about its Q3 2024 financials, the business previously pointed to net sales of $102.43 million/SEK 1.12 billion (up 15% YoY) and adjusted operating profit of $27.82 million/SEK 304 million (up 29% YoY).
Closing with a brief look at the significance of the purchaser’s location and regional reach, it’s hardly a secret that China and Hong Kong boast increasingly lucrative music spaces.
Notwithstanding CEO Michael Rapino’s position that the Chinese mainland isn’t “a good business” when it comes to promoting tours, Live Nation scooped up Hong Kong’s Clockenflap in 2023.
Closer to the present, Believe this past summer made multiple high-profile appointments in Greater China. And in 2024’s final quarter, Universal Music partnered with Chinese indie Modern Sky, unveiled an iQIYI tie-up, and, via Virgin Music Group, scooped up Beijing’s Outdustry.