Smithfield Foods to acquire the Nathan’s Famous brand

SMITHFIELD, VA. — Pork processor Smithfield Foods is acquiring Nathan’s Famous, Inc., owner of the Nathan’s Famous hot dog brand, for approximately $450 million.  

Smithfield Foods has licensed the brand name to manufacture and market Nathan’s Famous products to the retail and foodservice channels since 2014. The acquisition secures the company’s rights to the brand, according to Smithfield Foods.

“The Nathan’s Famous acquisition is a meaningful step in the progression of Smithfield Foods allowing us to own all of the top brands in our packaged meats portfolio and unlock new growth opportunities for our largest segment,” said Shane Smith, president and chief executive officer of Smithfield Foods. “Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand. With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan’s Famous will allow us to take the brand to new heights.”

Under the terms of the definitive merger agreement, Smithfield Foods will acquire all of Nathan’s Famous’ issued and outstanding shares of its common stock for $102.00 per share in an all cash transaction.  

“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” said Eric Gatoff, CEO of Nathan’s Famous. “As a longtime partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”

Smithfield Foods said the acquisition will be accretive to earnings for multiple reasons, including securing the use of the Nathan’s Famous brand, driving growth in its Packaged Meats business unit through innovation, increasing foodservice sales volume by controlling channel management, and improving operating efficiencies.