The Yorkshire family behind the Portakabin modular buildings group is heading for a bumper payday amid talks with investors about a potential deal.

Sky News has learnt that EQT infrastructure is among the parties which have been in discussions with Shepherd Group, which was founded in 1890 by Frederick Shepherd, about a takeover of Portakabin.

One insider described Swedish-based EQT on Tuesday as the frontrunner to secure a deal, although it was unclear whether it was in exclusive talks or whether other bidders remained in contention.

The size and structure of a transaction were also unclear.

Shepherd Group, which is based in York, drafted in bankers from Rothschild to launch a process during the summer.

Some reports suggested that it could be valued at as much as £2bn, although that figure could not be verified.

The company invented the Portaloo toilet units now widely used at festivals and sporting events, and Portakabin was formed as a standalone business in 1961.

A rival company called Modulaire was acquired by Brookfield from TDR Capital in 2021 for about $5bn, underlining investor interest in the sector.

Be the first to get Breaking News

Install the Sky News app for free

Portakabin operates in seven countries and employs about 2,200 people, according to its website.

Shepherd Group and EQT both declined to comment.

Related posts:

Bank of England governor downplays fears of deep COVID scarring Changes in assumptions about how long people live help Phoenix profits soar Train and bus operators will no longer enforce mask wearing in England from 19 July One in five hospitality and retail workers self-isolating, MPs told Wage growth, record fuel prices and a virtual fashion week Heathrow warns on investment as regulator eyes reduction in passenger charges Rolls-Royce pay award to avert strikes, retail sales fall and mince pie maker deals with soaring costs Goldman lures ex-Bank of England chief as international chair Disgraced crypto boss ‘donated stolen customer funds to politicians’ Russia hikes interest rates as rouble plummets Next lines up £100m FatFace in latest high street takeover deal Caramac bars to be discontinued after more than 60 years