THE MARSHALL BOARD RESPONDS TO THE BID TO THE MINORITY SHAREHOLDERS

Following the news of a bid to the minority shareholders of Marshall Group, the Board of Directors wants to clarify that the Board has not received a formal bid nor approved of any public bid from any entity. The Board also wants to highlight that the reported indicated price does not reflect a fair market value of the company today according to valuations provided by leading financial advisers.

Since 2021, Marshall Group is performing above all expectations, with the last twelve-month pro forma numbers adding up to almost 4B SEK in revenue and around 700M SEK in EBIT (after adjustment for extraordinary items). These results, combined with the transformation of the company from a licensee to a brand owner, creates the right conditions to unlock the full potential of the Marshall brand. The company is set to deliver innovative, premium products to both musicians and music lovers in a 1 trillion SEK market for decades to come.

“The Board of Directors considers the fair market value of the company being well above the reported bid of 415 SEK per share. This is based on the valuation work previously provided to the Board by leading financial advisors and on the exceptional current performance of the company. According to the benchmarks used by those advisors, the current fair value per share could be twice as much as the reported bid. In the current situation, the Board has assessed that it is its duty to share this information with all shareholders. This is not a guarantee about the future value of the share, which could be higher or lower, only a transparent statement to enable shareholders to take informed decisions. However, the Board strongly believes in the upside potential of the company and is planning to evaluate solutions to maximize liquidity opportunities for all shareholders at a higher price, including, but not limited to, an open, competitive and value optimized liquidity process and a potential share redemption program.” says Henri de Bodinat, Chairman, Marshall Group.

The company performance is continuing in Q1 & Q2 2023. Consolidated net sales during the period January to June amounted to MSEK 1,814.2 (1,279.1), equivalent to an increase of 42 percent. Adjusted operating profit increased to MSEK 308.9 (115.9) equivalent to an adjusted operating margin of 17.0 percent (13.8%).

In addition, to ensure that all shareholders have the same information in lieu of the current situation, the Board has decided to make an exception to its quarterly updates and share the monthly results for July where consolidated net sales increased by 57 percent to 353.7M SEK (225.9) and adjusted operating profit increased to MSEK 113.3 (26.1), equivalent to an adjusted operating margin of 32.0 percent (11.6%) in the month.

The Board is planning to evaluate liquidity options for all Shareholders to be executed within the next 12-18 months, including, but not limited to, an open, competitive and value optimized liquidity process and a potential share redemption program.

N.B: The majority of the Board approved this release.

Press contact:
press@marshall.com 

About Marshall Group
Marshall Group is the audio, tech and design powerhouse uniting musicians and music lovers through genre-breaking innovation. We are home to Marshall, Natal Drums, Urbanears, and adidas headphones. We gather around 800 highly talented people across 8 global locations and our products are sold in over 90 markets worldwide, totalling a combined annual turnover of USD 360 million in 2022.