AAR has agreed to acquire a 65% stake in privately held aircraft maintenance company MRO Holdings for $1.8 billion and will have the option to buy the remaining shares within six years after the deal closes. According to Sina Finance, citing people familiar with the matter, MRO Holdings' investors include Bain Capital.

The people said AAR, based in Wood Dale, Illinois, will issue about $780 million of new AAR shares to MRO investors, including Bain Capital. AAR said it expects to lift its EBITDA margin to 19% to 20% within three to four years after the transaction closes, from about 13% to 14% now.