RALEIGH, N.C. -- The security company formerly known as Blackwater is shedding its aviation division, selling the unit for $200 million to AAR Corp.
The two companies announced the deal Thursday evening. North Carolina-based Blackwater now operates under the name Xe (zee) Services. Xe said the deal allows the company "to move forward on a firmer economic basis."
Wood Dale, Ill.-based AAR will get the aviation units that operate under the umbrella name of Aviation Worldwide Services. That division has a fleet of 58 aircraft, many of which are used under U.S. government contract in Afghanistan.
AAR Chairman and CEO David P. Storch said in a statement that the market for government aviation "represents a tremendous growth opportunity."
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