Collins Foods Purchases 1.6 Million Naugles Shares

Collins Foods International Inc. of Los Angeles Friday completed its previously announced purchase of 1.6 million shares of Naugles Inc. from Harold Butler, the founder and former chairman of the ailing fast-food chain.

Details of the transaction, including the price paid by Collins Foods, were not disclosed at Butler’s direction. However, Collins Foods said the terms would be released late next week in a filing with the Securities and Exchange Commission.

With Friday’s purchase, Collins Foods now owns about 41% of Naugles’ outstanding shares and is the chain’s single largest share holder. In addition, Collins Foods is a large franchise holder in Kentucky Fried Chicken and the majority shareholder in the Sizzler steak house chain. In a separate transaction, Collins founder James Collins is expected to make a personal investment in Butler’s latest venture, the Herschel’s Deli & Bakery chain. Details of that investment were not disclosed.