Newcourt, the security and recruitment services group, has raised €8 million in new equity through a private placing.

The group will use the proceeds to acquire Sheehan Security, one of the largest independent security companies in the State. The funds will also be used to expand existing businesses.

Sheehans employs approximately 400 people and has its headquarters in Cork. Its managing director and principal shareholder, Mr John Sheehan, is to remain a director to oversee the transition in ownership.

The placing was organised through NCB, and the funds were provided by clients of NCB's wealth-management division and by the Guinness Ireland Ulster Bank Equity Fund.

Following the acquisition of Sheehans, the Newcourt group will employ 1,500 in the Republic and Northern Ireland.

Its other businesses include: Federal Security; Lisburn Security; Central Monitoring Services; Sigmar Recruitment; and Sigmar Aviation, an aviation crew recruitment business.

The first business owned by Newcourt was Federal Security, the Dublin-based company that employs about 450 people.

The group was set up in 2002 by Mr Ted O'Neill and Mr Philip Sykes and the two men still hold 20 per cent of the group between them.

Mr Sykes is a former director of AIB Corporate Finance.

Mr O'Neill, chief executive of Newcourt, is the founder of the Imari transport group which was sold to the Mersey Docks and Harbour Company in 2000 for €25.4 million. Mr O'Neill's stake at the time was valued at €5 million.

Mr O'Neill said Newcourt will now spend some time consolidating the security side of its operations.

However, he said, he was looking at other areas where he believes there may be opportunities.

The group was established with a view to exploiting the growing market for outsourced services.

He said the additional funds raised from the equity placing would provide support for the ambitious plans the group had for continued expansion and growth.

Mr James Osbourne, a former managing partner with A&L Goodbody and a non-executive director of Ryanair, has joined the board of Newcourt as non-executive director.

Mr Hugh O'Neill, former chief executive of Freightwatch (a company that specialised in the provision of security for valuable goods in transit), has joined the board of Newcourt as director of security and outsources services.