Bermuda Aviation Services Ltd. has purchased International Bonded Couriers of Bermuda Ltd. (IBC) along with its affiliates ZipX Freight Limited and Island Remail Services Ltd.

The deal, which takes effect this Friday, will see BAS acquire a majority interest of the privately owned company while current IBC President and Chief Executive Officer Glen Smith will retain a minority interest.

Terms were not disclosed.

IBC specialises in air express/domestic messenger services, and remail and freight services. BAS Group President Gene Bean said that his company wanted IBC because: ?It is a very strong company, very well run and very well established in the business community here.

?It touches just about any business in Bermuda with the services it provides and it has one of strongest management teams that I have come across in a local company.?

Mr. Bean said the services IBC provides complement services presently provided by BAS without any overlap. It is also a timely and necessary acquisition given the current weakness anticipated in the aviation industry.

He said: ?We?re situated here at the airport and we provide services through our freight department. We unload aircraft and we provide freight services to the public on this side of it. They actually get the freight from the consumer at the other end and bring it into Bermuda so naturally our services that we provide here just complement those services without any type of overlap whatsoever. Plus with the depth of knowledge between the two companies in these areas there is ample room for growth and further services.?

Mr. Bean declined to comment on plans for future growth or services nor would he comment on the price his company paid for IBC.

The acquisition is one of several BAS has conducted in recent years as the company has embarked on a diversification programme due to declining revenues in its core aircraft services and airline catering businesses. It has also recently purchased Crow Lane Bakery and car parts business Weir Enterprises. Most recently it exited its 57-year-old the catering business because airlines were drastically cutting back on food for passengers. As for future expansion, Mr. Bean does not rule it out.

He said: ?For now we would like to take some time to digest IBC and get it integrated. I would not say that this is the end of our expansion. We will always be looking to strengthen BAS in anyway we can as long as the companies fit and we find good management that can come along with any company that we target.?

The buyers says that IBC?s customers will see no change in the service they have received over the years because all staff and management including Mr. Smith will remain with the company. Gordon Bussell, who has served as chief financial officer of IBC for the past four years, will assume the position of CEO next February while Mr. Smith will remain a shareholder and director and will, for the next five years, offer his services as a consultant.

At age 41, Mr. Smith is hardly near retirement age, but he says the sale of the company he founded 16 years ago will allow him to pursue other personal interests including charitable, community and political activities. ?It is a fantastic company. It has great people running it, a fantastic management team so if you have team to run it and you have so much interest in it then why not let it go,? he said.

?I?m happy and excited about moving the company into a bigger and new direction.?