AAR to buy Aviation Worldwide for $200 mln

* Deal to add to earnings in first year

* To boost annual rev by $175 mln

Defense News: March 25 (Reuters) - Aircraft parts supplier AAR Corp (AIR.N) said it would buy privately held Aviation Worldwide Services (AWS) for $200 million to expand its services to government customers in the United States and abroad.

AAR, which serves customers in both commercial aviation and government/defense markets, said the business is expected to generate about $175 million of revenue annually and add to its earnings and margins within its first year of ownership.

The company said it would purchase AWS, a provider of expeditionary airlift services and aircraft modifications to government customers, from Xe Services LLC.

AWS operates a fleet of 58 customized aircraft through its subsidiaries Presidential Airways and STI Aviation.

AAR expects to fund the deal through a combination of available cash, a new 270-day syndicated credit facility and a five-year term loan secured against certain aircraft. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Maju Samuel)