Private equity giant Blackstone Group LP is close to striking a more than $1 billion deal to buy Servpro Industries Inc. after emerging as the winning bidder in the services-franchise operator's auction, The Wall Street Journal reported, citing people with knowledge of the matter.

The potential transaction, which would include debt, will be carried out by Blackstone out of its long-dated private equity fund, one of the sources told the publication.

Servpro provides residential and commercial restoration services through a network of more than 1,700 franchisees across the U.S., according to its website.

Investment bank Harris Williams & Co. conducted the auction for Servpro, according to WSJ.