Guitar amp maker Marshall acquired by China’s HongShan in $1bn+ deal

China’s HongShan Capital Group (HSG) has entered into a definitive agreement to acquire a majority stake in The Marshall Group – the UK-born audio company known for its iconic rock amplifiers – in a deal worth EUR €1.1 billion (approx. USD $1.16bn).

Under the terms of the deal, which is subject to regulatory approval, the Marshall family will retain a stake of more than 20% in the company, and HSG will “work closely with the Marshall family and the management team to strengthen the Marshall brand and fuel its sustainable and profitable growth,” Marshall Group said in a statement on Friday (January 24).

Investors selling their stake in the company include Swedish telecom Telia, private equity firms Altor and Time for Growth, and venture capital firm Zenith.

Founded in Hanwell, West London in 1962 by Jim “the Father of Loud” Marshall and his son Terry, Marshall Amplification quickly became one of the most iconic brands in rock music, with its amps used by the likes of Jimi Hendrix, Eric Clapton, Led Zeppelin’s Jimmy Page, and Oasis.

Marshall developed its amps as a more powerful alternative to existing amps, following complaints from musicians, notably Pete Townshend of The Who, that existing amps weren’t loud enough.

The company continues to manufacture amplifiers in the UK at the Marshall factory in Bletchley, Milton Keynes.

In 2010, the company licensed Swedish tech company Zound Industries to create a line of headphones and Bluetooth speakers under the Marshall name. The venture proved successful, and in 2023, Stockholm-headquartered Zound acquired Marshall’s amp business, forming the new Marshall Group.

The Marshall family became the largest single shareholder in the new company.

“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.”

Terry Marshall, Marshall Group

The company also runs an Artist Services division, which includes a record label and a recording studio.

“We are now over 60 years into our journey, and the pioneering sound of Marshall continues to resonate across the world,” Terry Marshall said in announcing the HSG acquisition.

“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.”

Formed in 2005, HSG is a venture capital and private equity firm that has invested in more than 1,500 businesses, some 160 of which have debuted on stock exchanges, while 140 privately-held companies in its portfolio have reached unicorn status (a valuation of at least $1 billion), the company says.

Among its most prominent investments are Chinese digital giant Alibaba, electric vehicle maker BYD, and ByteDance, parent company of TikTok, according to Bloomberg.

Steve Jia, Partner at HSG, called Marshall one of the world’s “most iconic” brands.

“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,” he said.

Taro Niggemann, Managing Director for Europe at HSG, said the firm’s mission now includes “support[ing] Marshall in unlocking its full potential by leveraging our expertise in digital channels and supply chain optimization. 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.”

“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.”

Steve Jia, HangShon

Marshall products are sold in some 90 countries around the world. The Marshall Group says it doubled its revenue between 2020 and 2024, to €400 million ($421 million).

“This deal is a testament to our team’s dedication and exceptional talent in making our vision a reality,” Marshall Group CEO Jeremy de Maillard said.

“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.”Music Business Worldwide