"Nathan's Famous, which opened as 5-cent hot dog stand in Coney Island more than a century ago, has been sold to packaged meat giant Smithfield Foods in a $450 million all-cash deal, the companies announced Wednesday. Smithfield, which has held rights to produce and sell Nathan's products in the U.S., Canada and at Sam's Clubs in Mexico since 2014, will acquire all of Nathan's outstanding shares for $102 each."
"Smithfield said it expects to achieve annual savings about $9 million within two years of closing the deal. "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," said Nathan's CEO Eric Gatoff. Nathan's board of directors, which own or control nearly 30% of the outstanding shares of Nathan's Famous common stock, approved the buyout and agreed to recommend to its shareholders to vote in favor of the deal."
Smithfield Foods will acquire all outstanding shares of Nathan's Famous for $102 per share in a $450 million all-cash transaction, with closing expected in the first half of 2026. Smithfield has held rights to produce and sell Nathan's products in the U.S., Canada and at Sam's Clubs in Mexico since 2014. Smithfield expects to achieve approximately $9 million in annual savings within two years of closing. Nathan's board, which owns or controls nearly 30% of outstanding shares, approved the buyout and recommended shareholder approval. Smithfield reported over $1 billion in operating profit on $14.1 billion in 2024 sales. Nathan's fiscal 2025 profit was $24 million on nearly $150 million in revenue.
Read at AP News
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