Smithfield Foods, Inc. (NASDAQ:SFD) on Wednesday announced it has struck a deal to acquire Nathan’s Famous, Inc. (NASDAQ:NATH), bringing the iconic hot dog brand fully under its ownership and eliminating the expiration risk associated with a long-running licensing agreement.
The all-cash transaction values Nathan’s Famous at roughly $450 million, with Smithfield offering $102 per share and targeting a close in the first half of 2026, subject to shareholder and regulatory approvals.
Against the backdrop of consolidation in the packaged-foods industry, Smithfield Foods is making a decisive move to lock in one of America’s most recognizable food brands and extend a partnership that has already spanned more than a decade.
Smithfield has held exclusive rights since 2014 to produce and sell Nathan’s Famous-branded products across U.S. retail and foodservice channels, as well as in parts of Canada and Mexico. That agreement was scheduled to expire in 2032, a deadline the acquisition effectively removes by granting Smithfield perpetual control of the brand.
Strategic Rationale
Smithfield President and CEO Shane Smith described the deal as a step toward strengthening its packaged-meats portfolio. “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,” Smith said.
“Since entering into our licensing 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.”
Financial Impact
Smithfield expects the deal to be immediately accretive to adjusted diluted earnings per share from continuing operations. The company projects approximately $9 million in annual cost savings by the second year after closing, driven by operational efficiencies and tighter integration across sales channels.
Nathan’s Famous CEO Eric Gatoff said the agreement reflects a strong valuation and a natural evolution of the partnership. “This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders. As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”
Nathan’s board unanimously approved the merger and will recommend that shareholders vote in favor. The transaction will be funded with Smithfield’s existing cash and remains subject to antitrust review, CFIUS approval, and other customary conditions.
Directors controlling about 29.9% of Nathan’s shares have already agreed to support the deal.
As of Sept. 28, 2025, Smithfield Foods had $3.069 billion in available liquidity, including $773 million in cash and cash equivalents and $2.297 billion of remaining capacity under its committed credit facilities.
Price Action: Smithfield Foods shares were down 0.02% at $23.36 at the time of publication on Wednesday, according to Benzinga Pro data. Nathan’s Famous shares were up 8.70%.
Photo by Wirestock Creators via Shutterstock
