Nathan’s Famous Hot Dogs Acquired for $450 Million
Nathan’s Famous, a historic hot dog brand established over a century ago in Coney Island, has been sold to Smithfield Foods. The all-cash deal is valued at $450 million, according to an announcement made by the two companies.
Details of the Acquisition
Smithfield Foods, a major player in the packaged meat industry, will acquire all outstanding shares of Nathan’s at $102 each. This transaction is anticipated to finalize in the first half of 2026. Smithfield has been associated with Nathan’s since 2014, holding rights to produce and distribute its products across the U.S., Canada, and Sam’s Clubs in Mexico.
Financial Impact and Future Expectations
- Smithfield saw nearly a 9% increase in midday trading, reaching $100.81 per share.
- Annual savings of approximately $9 million are expected within two years post-acquisition.
- Nathan’s reported a profit of $24 million and revenue of about $150 million for fiscal year 2025.
- Smithfield generated over $1 billion in operating profit with sales amounting to $14.1 billion in 2024.
Eric Gatoff, the CEO of Nathan’s, praised Smithfield for its commitment to the brand, emphasizing their focus on quality and customer service. Additionally, Nathan’s board of directors, which controls nearly 30% of the outstanding shares, has approved the buyout and is recommending that shareholders support the deal.
Smithfield Foods Overview
In addition to Nathan’s Famous, Smithfield owns various meat brands, including Gwaltney and Armour. The company’s strong financial performance positions it well for future growth, especially as it integrates Nathan’s into its business model.
