China's Fosun Eyes Silver Cross As Next Target

One of China's fastest-growing conglomerates is in talks to add to its burgeoning collection of western brands with an offer to acquire a stake in Silver Cross, the upmarket British pram-maker.

Sky News has learnt that Fosun, which is run by an executive who has been dubbed as China's answer to Warren Buffett, the billionaire American investor, has lodged a bid to invest in Silver Cross in a deal worth tens of millions of pounds.

A deal has yet to be signed between Fosun and Alan Halsall, the entrepreneur who rescued Silver Cross from administration in 2002, but one could be struck in the coming days, according to one of the unsuccessful bidders for the business.

Mr Halsall, now better known as one of the co-chairman of Business for Britain, the group lobbying for reform of the UK's membership of the European Union, has been hunting a buyer for the pram-maker for several months.

If Fosun does proceed with the acquisition, it would be at the smaller end of a spectrum of deals orchestrated by Guo Guangchang, the company's founder, in the last 12 months.

Fosun has bought a stake in, and signed a joint venture, with Thomas Cook; participated in a takeover of Cirque du Soleil, the Canadian circus troupe; and bought Ironshore, a Bermuda-based reinsurer.

The international acquisition spree has been one of the most significant embarked upon by a single Chinese entity, and follows takeovers by Chinese companies of other Western brands such as the UK's Weetabix.

One source said on Sunday that it remained possible that Fosun could walk away from the Silver Cross talks or be trumped by another bidder.

It is unclear how large the stake is that Mr Halsall is looking to sell.

Founded by William Wilson, an inventor who in 1877 is credited with producing the first perambulator, Silver Cross manufactures its products in Yorkshire, one of which carries the name of Aston Martin, the luxury car marque.

"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.

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 source 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".

A Silver Cross spokeswoman declined to comment, while Fosun could not be reached for comment.