The portable building business is being sold by laundry specialist Davis Service Group for around £150m.

The Davis Service Group has confirmed that it is in discussions with potential buyers for its portable building division Elliott Group.

The owner of the Sunlight Laundry business is understood to be selling the division for around £150m. It wants to use the proceeds of the Elliott sale to expand its continental laundry operations.

Elliott makes up 20% of Davis’s business and its turnover is around £140m per year.

A number of venture capitalists are tipped to bid for the business including 3i, Hg, Bridgepoint and Phoenix Equity Partners.