Miller Group has hired advisers from Greenhill to help the company find an investor that is willing to inject fresh equity capital to reduce the company’s £600m debt pile.
Under the proposed deal, Blackstone would take a big stake in the builder as part of a wider refinancing with lenders that is due complete in 2012.
According to a report in the Daily Telegraph Blackstone plans to work with Keith Miller, chief executive, and use the Miller Group as a vehicle for consolidation in the sector.
The firm established a reputation as a consolidator in the leisure and healthcare sectors where it bought several businesses.