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The sale was funded by a fully underwritten entitlement offer of $44.1 million, as well as new debt facilities totalling $69.3 million.
Of the 28 KFC restaurants, 14 are located in Tasmania, eight in South Australia, and six in Western Australia, with two of the six in WA currently under construction.
Collins Food managing director and CEO Graham Maxwell says these acquisitions will allow the company to expand in new territory.
"This acquisition provides an exciting opportunity for us to continue to grow in Western Australia and develop new growth platforms in Tasmania and South Australia," says Maxwell.
"The acquisition portfolio is attractive and the transaction is consistent with Collins Foods' strategy to drive operational growth while delivering strong value for shareholders."
"The acquisition further reinforces the confidence that Yum! has in Collins Foods as a strong operator of KFC restaurants in Australia and globally."
Alongside the acquisitions, Collins has also announced that Drew O'Malley will be the new Chief Operating Officer of the company from September 2017.
O'Malley has previously held roles in fast food, notably as Chief Operating Officer at AmRest where he was Brand President for KFC.
At AmRest, O'Malley was responsible for more than 500 European restaurants across four brands (KFC, Pizza Hut, Starbucks, and Burger King).
Earlier this year Collins Foods increased its European expansion through the purchase of 16 KFC restaurants in the Netherlands for $87.7 million from Yum!.
The deal included a development agreement with which set out a pipeline of 20 new Collins-owned KFC restaurants in the Netherlands by 2021.
In December 2016, Collins also purchased 11 German based KFC restaurant.
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