Fidelity National Financial Inc., a title insurance and mortgage services company, is buying the restaurant operator O'Charley's Inc. The company also owns a stake in the Baker's Square restaurant chain, reports the Associated Press, as well as Village Inn and Max & Erma's chains. The company will pay $9.85 per share of the available stock, to go with the 9.5 percent of O'Charley's stock the company already owns.
O'Charley's operates or franchises 342 restaurants under its namesake brand, as well as the Ninety Nin Restaurants and Stoney River Legendary Steaks Brands.
Fidelity Chairman William P. Foley II said in a statement that Fidelity has been looking for a restaurant operator that would complement its investment in American Blue Ribbons.
Both Fidelity and O'Charley's boards have unanimously approved the transaction, and said they expect the deal to close in the second quarter. But O'Charley's still may seek out third-party proposals through March 6.
O'Charley's latest quarterly result was a net loss of $8.1 million for the quarter ending December 25. That was an improvement from the previous year's results, which was a net loss of $20.6 million.