China’s Acquisition of Marshall Group Audio Company
China’s Hongshan Capital Group (HSG) has finalized an agreement to acquire a controlling share in the UK-based Marshall Group Audio Company.
According to the transaction terms, pending regulatory approval, Family Marshall holds more than 20% of the company. HSG “closely collaborates with the Marshall family and management team to enhance the Marshall brand and foster its consistent and profitable growth,” the Marshall Group stated on Friday (January 24).
Investors divesting shares in the company include Swedish telecom Telia, private joint-stock companies Altor and Time for Growth, along with corporate capital Zenith.
The Legacy of Marshall Amplification
Founded in Hanwell, Western London in 1962 by Jim “Father Loud” Marshall and his son Terry, Marshall quickly emerged as one of the most iconic brands in rock music, with amplifiers utilized by legends like Jimi Hendrix, Eric Clapton, and Led Zeppelin.
The company created amplifiers that provided a more powerful alternative, responding to musicians’ complaints, particularly from Pete Townshend of The Who, who voiced concerns that existing models were not loud enough.
Marshall continues production in the UK at its factory in Bletchley, Milton Keynes.
In 2010, the company partnered with Swedish tech firm Zound Industries to develop a range of Bluetooth headphones and speakers under the Marshall brand, which proved successful. In 2023, Zound Industries acquired Marshall’s AMP, creating a new Marshall group.
The Marshall family has become the largest shareholder in this new entity.
“Together with HSG and our team, we can additionally rely on our history to strengthen the love of music and the Marshall brand for decades.”
Terry Marshall, Marshall Group
The company also oversees an Artist Services Department, which includes an artist label and a recording studio.
“Now we have grown for more than 60 years, and the innovative sound of Marshall continues to resonate worldwide,” said Terry Marshall upon announcing HSG’s acquisition.
“Together with HSG and our team, we can additionally rely on our history to strengthen the love of music and the Marshall brand for decades.”
Formed in 2005, HSG is a venture capital and private investment firm that has invested in over 1500 enterprises, with around 160 going public and approximately 140 private companies reaching unicorn status (valued at least $1 billion), according to the company.
Notable investments include the Chinese digital giant Alibaba, electric vehicle manufacturers BYD, and ByteDance, the parent company of TikTok, as per Bloomberg.
Steve Jia, a partner at HSG, referred to Marshall as one of the “most iconic” brands globally.
“Based on this heritage, we believe that Marshall will reinforce its position as a brand for guitarists and remain the most exciting brand for music lovers worldwide. We are delighted to collaborate with the Marshall family and the team to contribute to music history,” he stated.
Tarot Nigemann, the European Director at HSG, mentioned that the company’s mission now includes “supporting Marshall to fully reveal its potential utilizing our expertise in digital channels and optimizing supply chains. We aim to help bring exclusive Marshall products to an even larger audience globally, maintaining the spirit that has defined the brand for generations.”
“Based on this heritage, we believe that Marshall will reinforce its position as a brand for guitarists and remain the most exciting brand for music lovers worldwide.”
Steve Jia, Hongshan
Marshall products are sold in approximately 90 countries across the globe. The company states it aims to double its revenue from 2020 to 2024 to €400 million ($421 million).
“This transaction is a testament to our team’s dedication and exceptional talent in realizing our vision,” said Marshall Group CEO Jeremy de Mayard.
“Together with HSG and the Marshall family, we have the perfect conditions to continue relying on the iconic status of Marshall and unlock our full potential across the world.”
Guitar amp maker Marshall acquired by China’s HongShan in $1bn+ deal
