NASHVILLE, Tenn. -
Nashville-based O'Charley's Inc. announced Monday it has signed an agreement with Fidelity National Financial, Inc. to be purchased for $221 million.
According to a news release, Fidelity National will purchase all of O'Charley's outstanding shares of common stock for $9.85 per share, a 42% premium over the stock's previous closing price of $6.92.
The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second quarter.
"This transaction provides a number of benefits, including, for our shareholders a substantial and immediate cash value for their shares," O'Charley's CEO David Head said in the release. "We believe FNF's expertise and commitment to long-term growth will enable O'Charley's Inc. to complete its turnaround and achieve its growth objectives, benefiting our employees, guests, business partners and other stakeholders."
O'Charley's operates more than 340 restaurants under the O'Charley's, Ninety Nine and Stoney River concepts.
Fidelity National is the country's largest provider of title insurance.
"There is a real opportunity to continue to improve the operating performance at O'Charley's and to build on their current momentum," said Fidelity National Chairman William Foley II said, adding, "We look forward to the successful completion of the tender offer and to welcoming all of the O'Charley's concepts and employees to the FNF restaurant family."
Fidelity also owns Denver-based American Blue Ribbon Holdings, which operates several restaurant chains with a total of 220 company-owned restaurants and 63 franchised restaurants.
