Bastion secures investment for the future

16th March 2011

A leading North East specialist security equipment manufacturer has raised £400,000 from FW Capital to support its future growth.

Gateshead-based Bastion Security Installations will use the investment to increase its capacity as it expands into new and existing markets. It will also upgrade its production facilities and recruit and train new staff.

Bastion designs, manufactures and installs physical security products that provide some of the highest protection levels available. Its specialist security equipment is used by companies in the banking, defence and retail sectors, as well as by government departments.

In 2011, Bastion plans to launch several new products into the public security, commercial security and defence sectors. The first of these – a new, high security modular enclosure system, has achieved one of the highest industry ratings – the LPCB LPS 1175 physical attack resistance rating to SR5.

“We’ve seen significant interest in our products because they provide flexible, high security solutions for volatile environments,” explains Bastion’s Managing Director, Tom Deevy. “We’re now looking to expand beyond the UK market into new markets. So far we’ve had significant interest from the Middle East.”

Bastion, which has a staff of 22, was established some 28 years ago and acquired by Deevy in 2002 through a management buy-out (MBO). Since the buy-out the company has developed its product range, which includes cash machine enclosures, cashier facilities and anti-ballistic products. One of its most successful products is a secure cash machine enclosure that allows banks to site cash machines in a range of locations and not just their branches.

Commenting on the investment, Deevy added: “FW Capital’s investment will play an important role in our expansion. It will provide us with the working capital we need to help us enter new markets for physical security products where high security levels are required.”

Joanne Pratt, Senior Investment Executive at FW Capital said: “Bastion is a well-established business operating in a range of niche markets and is highly regarded in the UK. Bastion’s management team has a proven ability to develop innovative new products that differentiate it from the competition. FW Capital’s investment will help Bastion to accelerate its growth as it develops new products and penetrates new markets.”

FW Capital has made the investment from the £20 million North East Growth Plus Fund which is part of the £125 million Finance for Business North East Fund.

The North East Growth Plus Fund is targeted at established businesses in the region and can provide single-round investments of between £350,000 and £1.25 million.

Mark Irving, Director at Irving Ramsay Limited who acted as the corporate financial advisor on the deal, said: “It was a pleasure to work with Tom again. I advised him on the 2002 MBO and have worked with him since. FW Capital’s approach was efficient and expedient throughout, providing an effective solution for Bastion’s needs. I’m delighted Tom now has the funding he needs to drive the business forward and implement his strategic growth plans.”

Other advisors on the deal were Watson Burton LLP (legal advisors to FW Capital) and Muckle LLP (legal advisors to the company).

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