RALEIGH -- The security company formerly known as Blackwater shed its aviation division Thursday, selling the unit for $200 million to AAR Corp. in a bid to strengthen the firm's balance sheet.
Wood Dale, Ill.-based AAR will get two aviation units that operate under the umbrella name of Aviation Worldwide Services. That division has a fleet of 58 aircraft, many of which were used under U.S. government contract in Afghanistan for Moyock, N.C.-based Blackwater, which now operates under the name Xe Services.
AAR Chairman and CEO David P. Storch said in a statement that the market for government aviation "represents a tremendous growth opportunity." The company anticipates that the new line could generate $175 million annually.
