By William Spain, MarketWatch
CHICAGO (MarketWatch) -- Shares of Luby's, Inc. got a pop late Friday, gaining as much as 8% after the cafeteria chain said it would buy bankrupt Fuddrucker's for $61 million in cash.
Luby's /zigman2/quotes/206507565/composite LUB -1.16% said it will get "substantially all of the assets of Fuddruckers, Inc., Magic Brands, LLC and certain of their affiliates" while also assuming various obligations, real estate leases and contracts. It will also pay an additional $2.45 million of cash if it does not assume certain specified contracts.
Fuddruckers operates 60 of its eponymous restaurants, along with three Koo-Koo-Roo locations. Franchisees own another 138 Fuddruckers locations. The company filed for Chapter 11 bankruptcy protection in April 21.
Houston-based Luby's noted that the sale remains subject to the approval of a U.S. bankruptcy court but that it expects to close the deal by July 9.
Shares of Luby's finished the session higher by 47 cents, or 12.3%, to $4.30.