US pork processor Smithfield Foods has struck a deal to acquire hot-dog brand Nathan’s Famous.
In a statement issued yesterday (21 January), the WH Group subsidiary said it will purchase all Nathan’s Famous for $102 per share. The all-cash transaction values the business at around $450m.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Smithfield already has the rights to manufacture and sell Nathan’s Famous products in the US and Canada and at Sam’s Club stores in Mexico since March 2014.
The licence is due to expire in March 2032.
Shane Smith, the president and CEO of Smithfield, said: “Since entering into our licencing 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.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSmithfield expects the deal to be “immediately accretive” to its adjusted diluted earnings per share from continuing operations, adding it will “drive growth” in its packaged meats business unit.
The company projects annual cost synergies of about $9m by the second anniversary of closing.
“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,” added Smith.
Nathan’s Famous distributes its products across all 50 US states and the District of Columbia.
The brand is also present in 21 other countries through restaurants, foodservice programmes and licensing deals.
In fiscal 2025, the company reported a net profit of $24m and revenues of $148.2m.
Members of the Nathan’s Famous board of directors, who collectively own or control around 29.9% of the company’s outstanding shares, have entered into a voting agreement to support the deal.
Eric Gatoff, the CEO of Nathan’s Famous, said: “This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders.”
