American Title Finishes Purchase of Parent
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IRVINE — American Title Co. said Friday that the management-led purchase of 60% of the agency from parent company Fidelity National Financial Inc. has been completed.
The company was valued at $16 million, and the managers paid Fidelity $9.6 million, said Larri Jones, an American spokesman. Fidelity, the nation’s fourth-largest title insurer, retains a 40% stake in the firm and will continue to underwrite American’s policies.
American, which Fidelity expects will earn $2 million on $50 million in revenue this year, has 37 offices in 13 California counties and in the Phoenix area. It also owns several real estate-related companies, including West Point Appraisal. Fidelity earned $24.3 million last year on revenue of $636.9 million.
American executives have said they felt almost ignored in the mammoth Fidelity organization. Fidelity, which denied that American Title was a low priority, nevertheless encouraged management’s purchase of a majority interest.
Both companies are based in Irvine.
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