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Smithfield Foods Buys Nathan's Famous in $450M Deal
Smithfield Foods acquires Nathan's Famous in a $450 million all-cash deal, taking full ownership of the iconic hot dog brand.
Key Points
- Smithfield Foods acquires Nathan's Famous in a $450 million all-cash deal, taking full ownership of the iconic hot dog brand.
- The acquisition formalizes a decade-long partnership, giving Smithfield permanent control of the brand and its chain of over 200 restaurants.
- The move is part of Smithfield's strategy to focus on its packaged meats business and is expected to generate $9 million in annual cost synergies.
- The transaction is slated to close in the first half of 2026, pending regulatory and shareholder approval.
Smithfield Foods is acquiring iconic hot dog brand Nathan’s Famous in a $450 million all-cash deal, a move that permanently folds the brand into the meat processing behemoth's portfolio after a decade-long partnership.
From license to ownership: The acquisition cements a relationship that began in 2014, when Smithfield became the exclusive producer for Nathan's. With that licensing agreement set to expire in 2032, the buyout gives Smithfield control of the brand—and its chain of over 200 restaurants—"into perpetuity," according to the official announcement.
Unlocking new growth: "The Nathan’s Famous acquisition is a meaningful step... to unlock new growth opportunities for our largest segment,” said Smithfield CEO Shane Smith. The move strengthens Smithfield’s packaged meats division, with the company projecting $9 million in annual cost synergies.
A compelling valuation: For Nathan's Famous, the deal offers a "compelling valuation" for its stockholders, CEO Eric Gatoff said. He noted that as a long-time partner, "Smithfield has demonstrated an outstanding commitment to investing in and growing our brand."
The transaction is slated to close in the first half of 2026, pending regulatory and shareholder approval, and appears to be part of a broader corporate strategy for Smithfield, which has been pivoting away from pig farming to focus on its more profitable packaged meats business.
