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.

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

Shepherd Group and EQT both declined to comment.