Bermuda Aviation Services (BAS) appears to be on a continued diversification trend with the announcement this week that it has amalgamated with an auto parts and repair company as well as a property company.

Legal notices in The Royal Gazette this week show the company to be amalgamating with Weir Enterprises and Eastbourne Properties.

The move follows the company's move over recent years in to non-aviation sectors beginning with its purchase of Crow Lane Bakery about five years ago.

BAS, which was founded in 1947 as a British Airways venture, is now a public and fully Bermuda-owned company.

The company also holds 60 percent ownership in a joint venture - BAS-Serco - with international management contractor Serco.

A press release from the Bermuda Stock Exchange - on which BAS is listed - said the company's merger with Weir Enterprises - through which it had acquired majority interest in the business and property - was to be effective from yesterday.

BAS president and chief executive officer Eugene Bean said: "Weir Enterprises is a privately-held business specialising in the sale of auto parts and quick service repair.

"The business has proven to be very well managed over the past five years, which contributed to its enormous success.

"BAS expects the business to add great value and stability to BAS and its group of companies."

Mr. Bean added that Weir Enterprises managing director George Hammond would stay on at the business, and was retaining minority interest in the company.

The acquisition was said to be financed in part by the Bank of NT Butterfield.

Mr. Bean said last year that the company's move in to non-aviation sectors had been "purposeful".

He added: "The business itself is cyclical, and we saw the need to diversify, so that when there are downturns (in air travel) that does not completely weaken the company," he said.

The move to merge with Weir and Eastbourne follows word last year from BAS chairman Neville Conyers, in announcing the company's first-half results through September 30, 2001, that BAS expected poor results for the second half of its fiscal year.

This included expected revenue declines of 18 percent, and net results at year-end being 50 percent below the previous year.

From aviation services alone, Mr. Conyers estimated BAS would see a decline in revenue of more than $2.3 million for the period.

But Mr. Conyers added that its earnings during the first six-months as well as revenue from its non-aviation holdings would "keep the company in the black".

BAS was contacted for further details on the amalgamation with Eastbourne Properties Limited, but calls had not been returned by press time.