DAVOS, Switzerland, Jan 24 (Reuters) - HongShan Capital Group (HSG) announced on Friday that it had reached an agreement to acquire a majority stake in Stockholm-based audio equipment maker Marshall Group, valuing the company at 1.1 billion euros ($1.15 billion).
In a separate statement, Swedish telecom group Telia confirmed the sale of its 9.6% stake in Marshall Group to HongShan for 1.15 billion Swedish crowns ($105 million).
The transaction, pending regulatory approvals, would represent the Chinese venture capital giant's largest investment in Europe, as stated by HongShan in a release on Friday.
Following the deal, the Marshall family, founders of the company known for its guitar amplifiers favored by renowned musicians like Eric Clapton, will retain a stake of over 20%. Additional shareholders Altor, Time for Growth, and Zenith VC have agreed to sell their holdings, according to the statement.
This acquisition underscores HongShan's ongoing interest in European deals, complementing its existing portfolio that includes French designer brand AMI Paris and British online bank Monzo.
Formerly recognized as Sequoia China, the firm established its London office last year to explore late-stage and buyout opportunities in Europe, particularly focusing on the consumer, energy, and healthcare sectors in the region, following its office in Singapore.
A pioneer in Chinese tech investments, HongShan was established in 2005 by Neil Shen, formerly a banker and now a prominent figure in China's venture capital arena. The company boasts a portfolio of over 1,500 investments, with stakes in major firms like ByteDance, owner of TikTok, and manages assets exceeding $55 billion.
Following its spin-off from U.S. venture capital heavyweight Sequoia last year to better navigate economic and geopolitical shifts, HongShan expressed plans to collaborate with the founding family and management team to reinforce the Marshall brand and foster its expansion.
Taro Niggemann, HongShan's managing director for Europe, stated, "We aim to help bring Marshall's exceptional products to even more customers globally."
Marshall, renowned for its stylish earphones and live music equipment, operates in over 90 markets, with China and the Nordic regions standing out as key markets.
The company's revenue doubled from 2020 to 2024, reaching approximately 400 million euros.
($1 = 10.9310 Swedish crowns)