(Bloomberg) — HongShan Capital Group is nearing a deal to acquire iconic audio equipment maker Marshall Group AB, people familiar with the matter said.
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A deal could value the Stockholm-based company, whose guitar amplifiers have been used by musicians including Jimi Hendrix, Eric Clapton and Lana del Rey, at about $1.1 billion, the people said, asking not to be identified because the deliberations are private. The founding Marshall family may retain part of its stake in the business in any transaction, according to the people.
HongShan, the investment firm formerly known as Sequoia China, has emerged as the likeliest buyer for Marshall after outbidding other funds, the people said. HongShan and Marshall are negotiating final details of an agreement that could be reached in the coming days, the people said. Talks are ongoing and no final decisions have been made, they added.
Many private equity firms that traditionally focused on China have been shifting their attention to other geographies such as Southeast Asia, Japan and Europe.
HongShan is a venture capital and private equity firm investing across technology, health care and consumer sectors. Since its foundation in 2005, it has backed more than 1,500 companies, including Alibaba Group Holding Ltd., BYD Co. and ByteDance Ltd., its website shows.
An audio, technology and design group, Marshall traces its roots back to 1962 in the UK, according to its website. Its products range from amplifiers to headphones and wireless speakers. It has a presence in more than 90 markets.
Closely held Swedish group Zound Industries acquired Marshall in 2023, while the founding Marshall family remained a shareholder. The transaction also included Natal Drums, Marshall Records and the Marshall Live Agency. Later that year, private equity firm Altor Equity Partners AB bought a significant minority stake in the business.
Representatives for HongShan, Marshall Group and Altor didn’t immediately respond to requests seeking comment.
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