First American Announces Agreement to Acquire Mother Lode Holding Company and Its Operating Subsidiaries

Rhea-AI Summary

First American Financial Corporation (NYSE: FAF) has announced its pending acquisition of Mother Lode Holding Company, a California-based title insurance provider with 17 subsidiaries across the U.S. This strategic move aims to enhance First American's market presence in 11 states, leveraging Mother Lode's strong customer service reputation. The acquisition is subject to regulatory approvals. Following the deal, Mother Lode will maintain its branding and management team, ensuring continuity for its employees and customers. First American reported $7.1 billion in revenue in 2020.

Positive

• Acquisition expected to enhance market presence in 11 states.
• Leverages Mother Lode's strong customer service reputation and expertise.
• Access to the industry's largest property and ownership dataset.

Negative

• None.

—Pending acquisition will expand First American’s footprint in 11 states—

SANTA ANA, Calif.--(BUSINESS WIRE)-- First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, announced today the signing of an agreement for First American’s acquisition of Mother Lode Holding Company, a California-based provider of title insurance, underwriting and escrow services for residential and commercial real estate transactions with 17 operating subsidiaries throughout the U.S., including its principal subsidiary Placer Title Company. The closing of the transaction is subject to regulatory approvals and the satisfaction of customary closing conditions.

With 92 offices in 11 states, Mother Lode Holding Company’s subsidiaries are premier brands within their respective real estate communities rooted in a 48-year track record of providing superior customer service. Mother Lode Holding Company’s subsidiaries operate primarily in California, Idaho, Montana, Wyoming, Texas, Arizona, Washington and New Mexico.

“Mother Lode Holding Company’s reach, expertise and commitment to superior customer service aligns well with our existing operations and will augment our efforts to expand our coverage in key growth markets,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “With Mother Lode Holding Company and its subsidiaries, we will expand our ability to serve customers throughout many of the strongest housing markets in the U.S.”

Customers of Mother Lode Holding Company’s operating subsidiaries will benefit from enhanced underwriting resources and the industry’s largest property and ownership dataset, as well as access to other industry-leading resources for residential transactions. Following the close of the transaction, Mother Lode Holding Company and its operating subsidiaries will continue to operate under their existing brands. Mother Lode Holding Company Chief Executive Officer Randy Bradley, Chief Operating Officer Lisa Steele and President Darrick Blatnick will remain with the company and manage the day-to-day operations.

“I’m excited about the new opportunities for our staff across our family of brands to serve our customers as the real estate market demonstrates continued strength,” said Bradley. “It was critical to our leadership team that any acquisition partner continue to support our employee-centric culture. First American's inclusion on the Fortune 100 Best Companies to Work For^® list for six consecutive years reflects that shared value.”

In connection with the transaction, Houlihan Lokey is acting as financial advisor to Mother Lode Holding Company.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.1 billion in 2020, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2021, First American was named to the Fortune 100 Best Companies to Work For^® list for the sixth consecutive year. More information about the company can be found at www.firstam.com.

About Mother Lode Holding Company

Mother Lode Holding Company provides title insurance, underwriting and escrow services for residential and commercial real estate transactions through its 17 operating subsidiaries in the U.S. With 92 offices in 11 states, Mother Lode Holding Company’s subsidiaries operate primarily in California, Idaho, Montana, Wyoming, Texas, Arizona, Washington and New Mexico. Mother Lode Holding Company’s principal subsidiary, Placer Title Company, was founded in 1973. More information about the company can be found at www.mlhc.com.

Forward-Looking Statements

Certain statements made herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.”

These forward-looking statements include, without limitation, statements regarding the completion of the transaction and the timing thereof as well as the effects thereof. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation, the failure to obtain necessary governmental or other approvals in a timely fashion, or at all; the failure of certain closing conditions to be satisfied; challenges to the proposed transaction or issues related thereto; or regulatory- or business-related challenges.

These forward-looking statements speak only as of the date they are made. First American does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220112005371/en/

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

(714) 250-3298



Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

(714) 250-5214

Source: First American Financial Corporation

FAQ

What acquisition has First American Financial Corporation announced?

First American Financial Corporation announced the pending acquisition of Mother Lode Holding Company.

How will the acquisition of Mother Lode Holding Company impact First American's market presence?

The acquisition will expand First American's footprint into 11 states.

What is the primary business of Mother Lode Holding Company?

Mother Lode Holding Company provides title insurance, underwriting, and escrow services for residential and commercial real estate transactions.

When is the acquisition of Mother Lode Holding Company expected to close?

The closing of the transaction is subject to regulatory approvals and customary closing conditions.

What revenue did First American Financial Corporation report in 2020?

First American reported total revenue of $7.1 billion in 2020.