CVC Capital Partners, the private equity group, is close to appointing bankers to advise on a possible sale, merger or flotation of Halfords, the car parts and bicycle retailer, according a report in The Scotsman, which says Halfords could be valued up to £600 million, just 16 months after CVC bought the company from Boots plc for £427 million.

The company is understood to have spoken to a number of advisers, including Deutsche Bank and Merrill Lynch. The transaction mooted excludes the former Halfords auto centres, which were not bought by CVC Capital Partners, but by the AA.