Under the terms of the deal, Zound Industries will acquire Marshall Amplification and the Marshall family will become the largest shareholder of the newly formed Marshall Group. The deal includes all of Marshall Amplification brands and subsidiaries, including Natal Drums, Marshall Records, and Marshall Live Agency.
On day one, Marshall Group revenues will be over 360 million USD (last 12 months) with double-digit profitability, cementing the company’s status as a global challenger in the audio technology sector. This deal builds on a long-term partnership between Zound Industries and Marshall Amplification that has lasted more than a decade and has grown through a shared passion for high-quality sound and designed-to-last products.
Henri de Bodinat, Chairman of Zound Industries (and of the new Marshall Group) comments: "With this game-changing deal, Marshall Group will become the main challenger in our industry and the most exciting alternative to traditional players, bringing even greater innovation and value to clients, employees, and investors alike."
Jeremy de Maillard, Zound Industries CEO states: "Combining our strengths and unique positioning as the Marshall Group will fuel our ambition to create premium, innovative, products and experiences for musicians and music lovers around the world. Zound has proven itself as a global, fast growing, and progressive company. With the Marshall Group, we are set to accelerate our profitable growth in a 100 billion USD market."
The Marshall Family will own 24% of the newly formed Marshall Group. Victoria and Terry Marshall – heirs of legendary "Father of Loud" Jim Marshall, who founded the company with his son Terry in 1962 – together with Jim’s granddaughter Joanne Marshall-Price, Paul Marshall and the Marshall Charitable Trust will play key roles within the new entity to ensure the legacy of the famous Marshall sound and brand. Terry and Victoria Marshall will join the board of Marshall Group.
Terry Marshall comments: "Since my father and I created the original Marshall amp back in 1962, we have always looked for ways to deliver the pioneering Marshall sound to music lovers of all backgrounds and music tastes across the world – and I’m confident that the Marshall Group will elevate this mission and spur the love for the Marshall brand."
Victoria Marshall continues: "With Marshall Group, the potential to further impact an ever-modernizing music industry is a highly genuine one. Together, we will preserve the Marshall legacy and shape the future of ‘Live Loud’. Having worked alongside my father during his later years, I know he would be excited at this direction and the potential to reach a larger worldwide audience with innovation and passion which he always had in spades."
One of Sweden’s leading tech entrepreneurs, Konrad Bergström, founder and board member of Zound Industries until 2018, and member of Jim Marshall’s Board of Trustees since 2015, has been instrumental in bringing together Zound Industries and Marshall Amplification, and will remain an advisor to the Marshall Group.
"I am proud that this deal has finally been completed. The success that we have achieved with the Marshall brand over recent years is soon going to be seen as having been the warm-up to a new British-Swedish headline act that is going to shake the tech and music industries to their foundations. Spinal Tap features one of cinema’s most iconic scenes when Nigel shows off how his Marshall guitar amplifier can turn ‘up to eleven’, but what we are announcing today is no parody: Marshall Group is going to go beyond established rules and limits and define a new sonic lifestyle category. We are going to Live Loud!," Konrad Bergström comments.
The new Marshall Group will leverage Zound Industries' first-class design, branding and go-to-market capabilities while building on Marshall Amplification's experience and reputation as a true icon in rock 'n' roll history, having served as the music industry’s amplifiers of choice for over 60 years. With this deal, the Marshall brand will resonate far more loudly, and Marshall Group will benefit from a holistic strategy and global business operations to boost its momentum in both revenue growth and profitability.
Zound Industries delivered two consecutive years of profitable growth. In 2022, net sales rose 44 percent with Zound breaking the 300 million USD barrier and hitting double-digit profitability with an operating margin of 10.3 percent, equivalent to an operating profit of 30 million USD. Zound is the powerhouse behind the Marshall, adidas and Urbanears speakers and headphones brands.
www.marshall.com
www.zoundindustries.com
