JACKSONVILLE, Fla. - A title insurance and mortgage services company that already owns a stake in the Bakers Square restaurant chain is buying the restaurant operator O'Charley's Inc., the companies announced Monday.
Fidelity National Financial Inc., based in Jacksonville, Fla., already has an investment in American Blue Ribbons Holdings LLC, which runs more than 360 owned or franchised restaurants under the Village Inn and Max & Erma's names as well as Bakers Square.
O'Charley's, which is based in Nashville, Tenn., operates or franchises 342 restaurants under its namesake brand as well as the Ninety Nine Restaurants and Stoney River Legendary Steaks chains.
Warren-based Covelli Enterprises had five O'Charley's restaurants as of June, when it was listed fifth among the nation's largest franchisees by Restaurant Finance Monitor with $400 million in annual revenue.
Fidelity already owns about 9.5 percent of O'Charley's outstanding stock. The company will pay $9.85 per share for the rest, a 42 percent premium to O'Charley's closing stock price Friday of $6.92. Fidelity National shares fell 22 cents to $18.21.
The price being paid values all of O'Charley's shares at about $221 million, the companies said.
O'Charley's stock jumped $2.89, or 41.8 percent, to close at $9.81 Monday.
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.