China's HongShan buys Marshall Group stake in $1.15 bln deal as Telia sells (updated)
24/01/2025 13:52
(Adds more background in paragraphs 3-7)
STOCKHOLM, Jan 24 (Reuters) - 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 TELIA.ST 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.
($1 = 10.9310 Swedish crowns)
(Reporting by Anna Ringstrom and Julie Zhu, editing by Stine
Jacobsen and Anousha Sakoui)
((anna.ringstrom@thomsonreuters.com;))