(Yicai) Jan. 27 -- Chinese private equity firm HongShan Capital Group will acquire a majority stake in Marshall Group in a deal that values the UK audio equipment maker at EUR1.1 billion (USD1.2 billion).

Funds managed by HSG have entered into a definitive agreement to buy a majority stake in Marshall, the Stockholm-based company announced on Jan. 24. In a statement released the following day, HSG said it will purchase the Marshall shares from Swedish telecoms firm Telia, Swedish private equity firm Altor Equity Partners, and other major shareholders.

The Marshall family will retain a 20 percent stake in the company, and HSG will work closely with the Marshal family and the management team to strengthen the Marshall brand and fuel its sustainable and profitable growth, Marshall added.

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

“Marshall is one of the world’s most iconic brands, firmly rooted in music culture,” said Steve Jia, partner at HSG. “By building on this legacy, we are convinced that Marshall will strengthen its position as the go-to brand for guitarists and as the most exciting brand for music lovers globally.

“We are thrilled to partner with the Marshall family and the team at Marshall to write music history,” Jia added.

“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, HSG’s managing director for Europe. “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.”

This transaction, which is subject to regulatory approvals, will mark HSG’s largest investment in Europe to date, Marshall noted. Previously, HSG invested in European companies engaged in the consumer sector, including French luxury apparel brand Ami Paris.

HSG spun off from Sequoia Capital in March last year and changed its name to HongShan Capital Group.

Since the creation of the Marshall Group in 2023, the company has continued to innovate and grow. It is on a strong, profitable growth trajectory, with revenue more than doubling to about EUR400 million (USD418.7 million) last year from 2020.

Editor: Futura Costaglione