The company formerly known as Blackwater Worldwide, known for its security work in Iraq, is selling its aircraft company. (2007 Photo By Marko Drobnjakovic/associated Press)
Ft Lauderdale, Florida 3/27/2010 05:20 AM GMT (TransWorldNews)
AAR Corp. (NYSE: AIR) has signed an agreement to acquire Aviation Worldwide Services (AWS) from Xe Services LLC. AAR is acquiring the business as part of its long-term strategy to expand its products, services and capabilities in support of government customers.
The purchase price for the acquisition is $200 million, which will be funded by a combination of available cash, a new 270-day credit facility and a 5-year term loan secured against certain aircraft. The business is expected to generate about $175 million of revenue on an annual basis and to be accretive to earnings and margins within the first year of ownership....
Federal prosecutors (click here) are considering weapons charges against former executives at Blackwater Worldwide over allegations that the private security company illegally stockpiled automatic rifles, including AK-47s, at its North Carolina headquarters, people close to the case said. Justice Department officials are reviewing a draft indictment against former Blackwater president Gary Jackson, former general counsel Andrew Howell and a third employee, the sources said. The company has changed its name to Xe.
With Iraq winding down and progress in Afghanistan the country doesn't need any so called expertise by them.
(Reuters) - Defense Secretary Robert Gates will review allegations of misconduct in Afghanistan by the company formerly known as Blackwater and shares concerns raised by a top senator, the Pentagon said on Friday.
Senate Armed Services Committee Chairman Carl Levin had made a personal appeal to Gates last week for the Pentagon to consider blocking a potential $1 billion contract with Blackwater, which has changed its name to Xe, to train Afghan police.
Levin cited what he called evidence of misconduct in a previous subcontract awarded to a Blackwater affiliate to conduct weapons training for the Afghan National Army.
"He is looking into it and he takes it seriously," Pentagon press secretary Geoff Morrell said of Gates. "He shares (Levin's) concerns," Morrell told reporters.
But Morrell played down the chances of any swift action to bar Blackwater from contracts, citing Pentagon rules and the company's unique capabilities....
... was also evidence Blackwater may have misappropriated government weapons, carried weapons without authorization and hired unqualified personnel with backgrounds that included assault and battery, as well as drug and alcohol abuse, Levin said.
Xe was not immediately available for comment on Friday....