Winners Joey Chestnut and Michelle Lesco, obscured behind hot dogs, pose at the Nathan's Famous Fourth of July International Hot Dog-Eating Contest in Coney Island's Maimonides Park on Sunday, July 4, 2021, in the Brooklyn borough of New York. (AP Photo/Brittainy Newman)
Smithfield Foods, Inc. and Nathan’s Famous, Inc. today announced that they have entered into a definitive merger agreement for Smithfield Foods to acquire all of Nathan’s Famous’ issued and outstanding shares for $102.00 per share in cash, which represents an enterprise value of approximately $450 million.
Eric Gatoff, CEO of Nathan’s Famous said, “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.”
Since March 2014, Smithfield Foods has held an exclusive license from Nathan’s Famous within the United States, Canada and Sam’s Clubs in Mexico for Smithfield to manufacture, distribute, market and sell “Nathan’s Famous” branded hot dogs, sausages, corned beef and certain other ancillary products through the retail channel, and to manufacture and distribute “Nathan’s Famous” branded hot dog and sausage products for the foodservice channel. The license is scheduled to expire in March 2032.
The closing of the transaction is expected to occur in the first half of 2026, subject to satisfaction of certain conditions set forth in the merger agreement, including obtaining approval by the holders of a majority of the outstanding Nathan’s Famous common stock, approval from the Committee on Foreign Investment in the United States, and other customary closing conditions.
Source: Smithfield Foods media release
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