HongShan Capital Group said on Friday it has struck a deal to acquire a majority stake in Marshall Group in a deal valuing the 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 Group 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, HSG said in a statement on Friday.
The founder Marshall family will retain over 20% of the company after the transaction while other shareholders Altor, Time for Growth and Zenith VC also agreed to sell their stakes, according to the statement.
The acquisition of Stockholm-based Marshall Group underscores HSG’s ongoing investment in Europe, building on previous investments in European companies such as French designer brand AMI Paris.
HSG, formerly known as Sequoia China, set up its office in London last year, its second overseas office after Singapore, to tap into late-stage and buyout deal opportunities in Europe in sectors such as consumer internet, new energy and healthcare sectors in Europe.
The fund has already made a few investments in the region including in British online bank Monzo and Paris-based fashion accessories brand D’Estree.
HSG, widely viewed as a bellwether for Chinese tech investment, was founded in 2005 by former banker and entrepreneur Neil Shen, now one of China’s best-known venture capitalists.
It became an independent firm last year after being spun off from U.S. venture capital giant Sequoia to better navigate economic and geopolitical challenges.
HSG said it plans to work with the Marshall family and management team to further bolster the Marshall brand and facilitate its sustainable and profitable growth.
“Our mission is to support 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” said Taro Niggemann, Managing Director for Europe at HSG.
Marshall, the maker of trendy earphones and stage music equipment, has more than doubled its revenue from 2020 to 2024, reaching about 400 million euros.
Reuters
