The new man is former Baxi CEO Martyn Coffey, who joins as chief executive designate in September before taking over in October.
Mr Holden will stay with the company as a director until April 2014 to smooth the handover.
Mr Coffey joins Marshalls from BDR Thermea Group, a €1.8bn manufacturer and distributor of domestic and industrial heating and hot water. This Dutch company was formed in 2009 when De Dietrich Remeha acquired Baxi. Mr Coffey had been CEO of Baxi since 2008. At BDR Thermea he was a divisional CEO and member of the management board. He also held group responsibility for sales, marketing and purchasing.
Prior to joining Baxi, he worked for Pirelli from 1991 to 2005, latterly as UK managing director.
Marshalls chairman Andrew Allner said: "The board is extremely pleased to have recruited Martyn as Marshalls' next chief executive. He has an outstanding track record as a proven chief executive in growing businesses and brings significant international experience. He joins a team at Marshalls with a very good understanding of the UK market, and a board with substantial City and investor understanding."