Nathan’s Famous—founded over a century ago as a 5-cent hot dog stand in Coney Island—has been acquired by packaged meat leader Smithfield Foods in a $450 million all-cash transaction, the two companies announced on Wednesday.
Smithfield, which has held the rights to manufacture and distribute Nathan’s products in the U.S., Canada, and at Sam’s Clubs in Mexico since 2014, will purchase all of Nathan’s outstanding shares at $102 each. The deal is expected to close in the first half of 2026.
Smithfield stated it anticipates achieving annual cost savings of roughly $9 million within two years after the transaction closes.
“As a long-standing partner, Smithfield has shown an exceptional commitment to investing in and growing our brand while upholding the highest quality and customer service standards,” commented Nathan’s CEO Eric Gatoff.
Nathan’s board of directors—who own or control nearly 30% of the company’s outstanding common stock—approved the acquisition and agreed to recommend shareholders vote in favor of the deal.
Smithfield, which also owns the Gwaltney bacon and Armour frozen meat brands, generated over $1 billion in operating profit in 2024 on $14.1 billion in sales. It is on track to exceed both figures when it reports fourth-quarter results.
Smithfield’s shares remained unchanged in midday trading Wednesday at $23.39.
In fiscal 2025, Nathan’s reported a $24 million profit on revenue approaching $150 million.