HongShan Capital Acquires Majority Stake in Marshall Group for €1.1 Billion

HongShan Capital Group, a Chinese venture capital and private equity firm formerly known as Sequoia China, has finalized a deal to acquire a majority stake in Marshall Group. The agreement values the Stockholm-based audio equipment maker, renowned for its iconic speakers and headphones, at €1.1 billion ($1.15 billion).

The transaction involves the purchase of stakes from major shareholders, including Altor, Telia Company, Time for Growth, and Zenith VC, while the Marshall founding family will retain over 20% ownership of the company. Swedish telecom firm Telia separately announced the sale of its 9.6% stake in Marshall to HongShan for 1.15 billion Swedish crowns ($105 million).

The acquisition, subject to regulatory approval, marks HongShan Capital Group’s largest investment in Europe to date. The firm plans to collaborate with the Marshall family and management to strengthen the iconic brand and drive its global growth.

Marshall Group, known for its renowned guitar amplifiers, headphones, and wireless speakers, was established in 2023 following the merger of Stockholm-based Zound Industries and U.K.-headquartered Marshall Amplification. The company has a strong global presence, operating in more than 90 markets. 

HongShan Capital Group, formerly Sequoia China, continues to expand its investment portfolio in Europe, which includes French fashion brand AMI Paris and British digital bank Monzo. The firm opened its London office last year to capitalize on late-stage and buyout opportunities in the region, focusing on consumer, energy, and healthcare sectors. This acquisition underscores its strategy to broaden its footprint in European markets.

Founded in 2005 by Neil Shen, HongShan has built a reputation as a leading Chinese private equity firm with over 1,500 investments, including notable companies such as Alibaba, ByteDance, and BYD. The firm manages more than $55 billion in assets and became an independent entity last year after separating from Sequoia Capital to navigate geopolitical and economic complexities more effectively.

HongShan Capital Group’s managing director for Europe, Taro Niggemann, expressed enthusiasm about the deal, stating, “We aim to help bring Marshall’s exceptional products to even more customers globally.” 

Renowned for its stylish earphones and professional music equipment, Marshall operates in over 90 markets, with China and the Nordic region being key markets. The company has experienced significant growth, doubling its revenue from 2020 to 2024, reaching approximately €400 million.

Telia Company’s head of M&A, Andreas Ekstrom, noted that the sale aligns with Telia’s strategic focus on its core business and described the timing and valuation of the deal as favorable.