Sky News has learnt that Triton Partners is on the verge of an agreement to acquire O'Connor Utilities Group, which is based in Manchester.

An industry source said a deal could be announced as soon as this week.

The takeover will come amid a tough environment for takeovers by private equity firms, which have found securing debt packages increasingly tricky during the last month.

In recent weeks, the sales of Boots and Parkdean Resorts - worth a combined £7bn - have been abandoned because of the torrid economic backdrop.

Triton owns a number of businesses in the UK, including Chevron Traffic Management, Pharmanovia and Clinigen.

O'Connor is run by brothers Tim and Tom O'Connor, and is thought to be largely family-owned.

It was founded in 1994, and provides services across sectors including telecoms, water and energy.

Clearwater Corporate Finance advised O'Connor on the sale.

On Sunday, a spokesman for Triton declined to comment.

Headline: Triton swoops on utility services group O'Connor in £400m deal.