[Editorial] Marshall acquired by HSG, a Chinese venture capital and private equity group

Little by little the world of “Western” audio is becoming a Chinese property. Another important piece gets added to the puzzle of glorious names in the world of music and its reproduction that have become the property of some Chinese holding company. Now it's the turn of Marshall, a legendary brand in the musical instrument market due to its amplifications, and recently also popular in consumer audio, with a line of products including Bluetooth speakers and wireless headphones.

Last month the group HSG (Hongshan Capital Group) acquired 80% of the shares of Marshall Group, the British brand that literally made the history of rock music. Founded in 1962 in Hanwell by Jim Marshall and his son Terry, Marshall Amplification has been the preferred choice of rock musicians around the world ever since. In 2010 it diversified its catalog by entering the consumer audio sector, collaborating with the Swedish company Zound, to become active in the market of Bluetooth headphones and speakers. In March 2023, Zound itself acquired the majority share of Marshall, thus creating the Marshall Group. Talking about numbers, Marshall Amplification now employs 200 people in its Milton Keynes headquarters and another 300 in a Vietnamese manufacturing plant. Zound, on the other hand, has around 280 employees working in its Stockholm headquarters.

The deal with the Chinese group HongShan Capital is worth 1.1 billion euros (around 1.16 billion dollars). Under the terms of the deal, which is subject to regulatory approval, the Marshall family will retain a greater than 20% stake in the company and HSG “will work closely with the Marshall family and management team to strengthen the Marshall brand and fuel its sustainable and profitable growth,” Marshall Group said in a recent statement. The shares taken over by HSG include those of previous investors: the Swedish telecommunications company Telia, the private equity firms Altor and Time for Growth and the venture capital firm Zenith.

Formed in 2005, HSG is a venture capital and private equity firm that has invested in more than 1,500 companies, about 160 of which have debuted on the stock market, while 140 private companies in its portfolio have achieved unicorn status (a valuation of at least $1 billion), the company says. HSG does things big, consider that among its most important investments there are the Chinese digital giant Alibaba, the electric vehicle manufacturer BYD and ByteDance, parent company of TikTok.

Am I worried? Yes I am, for sure. China is slowly buying up - piece by piece - the entire West, fighting a silent war, without weapons and bloodshed, while the West (and the USA) continue to think about something else. It is plausible that these acquisitions, at least in the first phase, do not involve the loss of jobs here, but the fact that glorious Western companies are changing owners at this rate gives me some legitimate doubts. I hope I'm wrong.

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March 2025 Editorial

HSG, a Chinese venture capital and private equity firm acquires 80% of Marshall Group