Banks led by HSBC and UBS are preparing a euro term loan financing to support HSG’s €1.1 billion acquisition of Marshall Group, according to market sources.
HSG, or HongShan Capital Group, announced plans to acquire Marshall last month for €1.1 billion including debt, in a deal that marks the Chinese venture capital firm’s largest-ever investment in Europe.
Hong Kong-based HSG is acquiring Marshall from investors led by Sweden’s Altor, which has owned the business since 2023. Marshall Group was formed the same year through the merger of Sweden’s Zound Industries and UK-based Marshall Amplification, and generates about €400 million in annual revenue.
The flagship Marshall brand is best known for its iconic guitar amplifiers and speakers, but the group also makes headphones and other consumer electronics. The Marshall family is retaining a 20% stake in the business following the latest ownership change.
Marshall’s decision to tap the euro term loan market to finance its buyout by HSG brings a rare example of a consumer-focused name to the new-issue market, although sources said other bidders were also looking at a euro loan or high yield solution to finance the deal.
China’s HSG, formerly Sequoia Capital China, is also a virtually unknown sponsor for European leveraged finance investors — although sources note the firm was previously an investor in euro term loan name Amer Sports.
LCD has approached HSG for comment.
ClarkandCompany/Getty Images
Learn more about our editorial standards.
