Silver Cross Tycoon Eyes Pre-Election Deal

The entrepreneur who rescued Silver Cross, one of Britain's best-known pram-makers, is in talks about a share sale that would net him a multimillion pound windfall.

Sky News understands that Alan Halsall, who bought the company out of administration in 2002, is negotiating with a number of investment funds about a transaction that could be signed in the coming weeks.

A person close to the situation said Mr Halsall was keen to secure a deal ahead of the General Election in May, with a number of changes to the tax system possible in its aftermath.

Silver Cross was founded by William Wilson, who in 1877 is credited with producing the first perambulator.

The company still manufactures in Yorkshire, and its models include one bearing the name of Aston Martin.

"In a marketplace dominated by global names, Silver Cross continues to cherish its early traditions. I am proud that Silver Cross is still a truly British business," Mr Halsall wrote in an article in The Daily Telegraph in 2012.

A source said on Thursday that Mr Halsall would remain a shareholder after a deal with a new investor, although it was unclear how large a stake he was looking to sell.

The funds raised from a transaction would be used to expand the company, including accelerating its growth in China, where it has stores in Hong Kong and Shanghai, the person said.

Last year, the company recorded sales of £28.5m and pre-tax profits of £4m, with turnover this year expected to hit £31m.

The source said it was conceivable that a deal would value Silver Cross at about £50m.

Since acquiring the company, Mr Halsall has taken it into the wider nursery furniture market as well as securing distribution deals in Europe and the Middle East.

The most recent accounts filed at Companies House for Silver Cross Nurseries Ltd, covering 2013, refer to "a challenging year for the group", partly as a consequence of "the wider economic situation within the worldwide economy...and competitor activity in a crowded market".

The hunt for a new investor is being led by Cavendish Corporate Finance, an advisory firm.