Inflexion Private Equity, the owner of the fashion chain Jack Wills, is in talks to buy Yo! Sushi, the UK's biggest Japanese restaurant group, for about £100m.
The private equity firm is understood to have been given a period of exclusivity within which to negotiate a deal with Yo! Sushi's owner, Quilvest
It is said to have seen off competition from rival bidders which were reported to have included 3i, Morgan Stanley Private Equity and Mistral Equity Partners, a New York-based fund.
Sky News understands that Inflexion Private Equity has in recent weeks emerged as the frontrunner to buy the company, which trades from more than 70 sites in the UK.
Yo! Sushi, which employs around 1,500 people, trades from over 70 UK sites, and has expanded internationally into Europe, the Middle East and the US.
The group was founded in 1997 by Simon Woodroffe, who was one of the original participants on the BBC's Dragons' Den programme.