By Julie Zhu
DAVOS, Switzerland (Reuters) – HongShan Capital Group (HSG) said on Friday it has struck a deal to acquire a majority stake in Marshall Group in a deal valuing the Stockholm-based audio equipment maker at 1.1 billion euros ($1.15 billion).
Swedish telecom group Telia said separately it has agreed to sell its 9.6% stake in Marshall Group to HongShan for 1.15 billion Swedish crowns ($105 million).
The transaction, subject to regulatory approvals, would mark the Chinese venture capital giant’s largest investment in Europe, HongShan said in a statement on Friday.
After the transaction, the founder Marshall family will retain over 20% of the company whose guitar amplifiers have been popular among famed musicians including Eric Clapton. Other shareholders Altor, Time for Growth and Zenith VC have also agreed to sell their stakes, according to the statement.
The stake acquisition underscores HongShan’s continued dealmaking appetite in Europe, adding to a portfolio that includes French designer brand AMI Paris and British online bank Monzo.
The firm, formerly known as Sequoia China, set up its office in London last year to tap into late-stage and buyout deal opportunities in Europe. The office, HongShan’s second overseas office after Singapore, focuses on the consumer, energy and healthcare sectors in the region.
Widely viewed as a bellwether for Chinese tech investment, HongShan was founded in 2005 by former banker and entrepreneur Neil Shen, now one of China’s best-known venture capitalists.
As an early investor in top Chinese tech firms such as Alibaba, HongShan has more than 1,500 portfolio investments including TikTok owner ByteDance and manages more than $55 billion in assets.
It became an independent firm last year after being spun off from U.S. venture capital heavyweight Sequoia to better navigate economic and geopolitical challenges.
HongShan said it plans to work with the founding family and management team to further bolster the Marshall brand and facilitate its growth.
“We aim to help bring Marshall’s exceptional products to even more customers globally,” said Taro Niggemann, HongShan’s managing director for Europe.
Marshall, known for its trendy earphones and stage music equipment, has a presence in more than 90 markets, with China being one of its key markets alongside the Nordic countries.
The company more than doubled its revenue from 2020 to 2024, reaching about 400 million euros.
($1 = 10.9310 Swedish crowns)
(Reporting by Julie Zhu in Davos, Switzerland and Anna Ringstrom in Stockholm; Editing by Stine Jacobsen, Anousha Sakoui and David Evans)
