Smithfield Foods Pounces For Nathan’s Famous Hot Dogs

Credit: Colin Dewar/ Shutterstock.com.

US pork processor Smithfield Foods has struck a woody to get hot-dog marque Nathan’s Famous.

In a connection issued yesterday (21 January), nan WH Group subsidiary said it will acquisition each Nathan’s Famous for $102 per share. The all-cash transaction values nan business astatine astir $450m.

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Smithfield already has nan authorities to manufacture and sell Nathan’s Famous products successful the US and Canada and at Sam’s Club stores in Mexico since March 2014.

The licence is owed to expire successful March 2032.

Shane Smith, nan president and CEO of Smithfield, said: “Since entering into our licencing statement successful 2014, we person made important investments to build and turn nan Nathan’s Famous brand.

“With our manufacturing scale, trading strength, merchandise invention capabilities, and unit and foodservice transmission expertise, acquiring Nathan’s Famous will let america to return nan marque to caller heights.”

Smithfield expects nan woody to beryllium “immediately accretive” to its adjusted diluted net per stock from continuing operations, adding it will “drive growth” successful its packaged meats business unit.

The institution projects yearly costs synergies of astir $9m by nan 2nd day of closing.

“The Nathan’s Famous acquisition is simply a meaningful measurement successful nan progression of Smithfield Foods allowing america to ain each of nan apical brands successful our packaged meats portfolio and unlock caller maturation opportunities for our largest segment,” added Smith.

Nathan’s Famous distributes its products crossed each 50 US states and nan District of Columbia.

The marque is besides coming successful 21 different countries done restaurants, foodservice programmes and licensing deals.

In fiscal 2025, nan institution reported a nett profit of $24m and revenues of $148.2m.

Members of nan Nathan’s Famous committee of directors, who collectively ain aliases power astir 29.9% of nan company’s outstanding shares, person entered into a voting statement to support nan deal.

Eric Gatoff, nan CEO of Nathan’s Famous, said: “This operation is simply a earthy fresh and provides a compelling valuation for Nathan’s Famous stockholders.”