Smithfield Foods plans to buy Nathan’s Famous in $450M deal

Smithfield Foods announced Wednesday it has entered a deal to purchase Nathan’s Famous, the hot dog and sausage brand, for $102 a share in cash, a value of about $450 million.

Since 2014, Smithfield has held an exclusive license to sell Nathan’s Famous hot dogs, sausages, corned beef and other products within the United States, Canada and Sam’s Clubs in Mexico, a license that is set to expire in 2032. With the purchase, Smithfield will retain its rights to the brand, which will continue to be marketed as Nathan’s, according to Wednesday’s announcement.

“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,” Smithfield President and CEO Shane Smith said in a statement. “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.”

Smithfield said it expects to earn about $9 million more annually by the second anniversary of the purchase. Nathan’s board of directors has approved the deal, and the closing is expected to take place in the first half of 2026, pending approval from Nathan’s Famous stockholders and meeting other conditions, the news release says. Goldman Sachs was financial adviser to Smithfield, and Hunton Andrews Kurth was legal counsel for the Smithfield-based corporation.

“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” Nathan’s Famous CEO Eric Gatoff said. “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.”

Shares of Smithfield, a majority-owned subsidiary of Hong Kong-listed WH Group, rose about 2%. The stock gained roughly 6% in 2025 after its market debut.

Nathan’s Famous began as a hot dog stand in 1916, founded by immigrant Nathan Handwerker with $300 borrowed from entertainers Jimmy Durante and Eddie Cantor, and initially sold hot dogs for 5 cents. The brand later expanded nationwide under the leadership of Handwerker’s son, Murray.

Reuters contributed to this article.