June 29, 2010 (FinancialWire) — Luby's, Inc. (NYSE: LUB) said that the United States Bankruptcy Court for the District of Delaware has approved the sale of substantially all of the assets of Fuddruckers, Inc., Magic Brands, LLC and certain of their affiliates to Luby's, Inc. for around $61 million in cash. Luby's, Inc. will also assume certain of Fuddruckers' obligations, real estate leases and contracts and will pay an additional $2.45 million in cash if it does not assume certain specified contracts.

Christopher J. Pappas, CEO of Luby's, said, “After closing this acquisition, we will focus on existing and newly acquired unit level performance, establishing effective Fuddruckers franchise community relationships, and our expansion plans for our brands."

Fuddruckers currently operates 62 Fuddruckers locations and 3 Koo-Koo-Roo locations, and franchisees currently operate an additional 135 Fuddruckers locations.

The transaction is scheduled to close on or before July 26.

Texas-based Luby's operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states. Luby's Culinary Services provides food service management to 17 sites consisting of healthcare, higher education and corporate dining locations.

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