Dive Brief:
- Smithfield Foods is buying hot dog brand Nathan’s Famous for $450 million in cash, or $102 per share. The transaction is expected to close in the first half of 2026.
- Shane Smith, Smithfield’s CEO, said the purchase will allow the meat giant to “unlock new growth opportunities” for its packaged meats business, the Virginia-based company’s largest segment.
- Smithfield has held an exclusive license to manufacture Nathan’s Famous within the United States, Canada and Sam’s Clubs in Mexico since 2014. The license is scheduled to expire in March 2032.
Dive Insight:
The 110-year-old Nathan’s, best known for its Coney Island hot dog eating contest on Fourth of July, has had a close connection to Smithfield for more than a decade. Now, the pork processor is aiming to cement those ties by acquiring the popular frank brand.
In a statement, Smithfield said the purchase will solidify long-term sales and cash flow, while improving the margins of its packaged meat business. Smithfield also owns Farmland, Eckrich and its namesake brand, among other offerings.
The meat giant also noted that the acquisition will enable it to expand Nathan’s portfolio to build customer awareness across Smithfield’s retail and foodservice sales channels. Nathan's all-beef franks also solidify Smithfield's presence in beef, which has been a small part of the pork company's portfolio.
“Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand,” Smith said. “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.”
The transaction is expected to achieve annual cost synergies of approximately $9 million by the second anniversary of the deal closing.
Nathan’s, whose hot dogs and other products are sold in stores, theme parks, movie theaters and other outlets, also operates or franchises more than 200 restaurants around the world. In its 2024 fiscal year, the New York-based food maker recorded $148 million in revenue, compared to $14.1 billion in net sales for Smithfield.
