National meat retailer Smithfield Foods on Wednesday said it will acquire Nathan’s Famous through a definitive merger agreement valued at about $450 million.
Since March 2014, Smithfield Foods has held an exclusive license from Nathan’s Famous within the United States, Canada and Sam’s Clubs in Mexico for Smithfield to manufacture, distribute, market and sell Nathan’s Famous branded hot dogs, sausages, corned beef and certain other ancillary products through the retail channel, and to manufacture and distribute Nathan’s Famous branded hot dog and sausage products for the foodservice channel. The license is scheduled to expire in March 2032.
Smithfireld said it will buy all of Nathan’s Famous’ issued and outstanding shares for $102 per share in cash. The transaction is scheduled to close in the first half of 2026.
“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 Smithfield President and Chief Executive Officer Shane Smith. “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.”
Successfully closing the acquisition will secure Smithfield’s rights to this iconic brand into perpetuity and enable it to maximize the Nathan’s Famous brand growth across the retail and foodservice channels, the company said.
“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders," said Eric Gatoff, chief executive officer of Nathan’s Famous. "As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”
