Famous hot dog brand sold for $450 million

"Smithfield already held rights to produce and sell Nathan's products in the U.S. and Canada, and at Sam's Clubs in Mexico since 2014, according to a news release. "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."

"The news release says Smithfield is paying $102 per share to acquire Nathan's in an all-cash transaction. The deal is expected to close during the first half of this year. Nathan Handwerker opened the first Nathan's hot dog stand on Coney Island in 1916 with a $300 loan, according to the company. After opening a handful of other locations around New York over the years, the Handwerker family sold the Nathan's Famous business to investors in 1987."

Smithfield Foods purchased Nathan's Famous for $450 million in an all-cash transaction at $102 per share. Smithfield held licensing rights to produce and sell Nathan's products in the U.S., Canada, and at Sam's Clubs in Mexico since 2014. The deal is expected to close during the first half of the year. CEO Shane Smith said the acquisition will let Smithfield own top packaged-meat brands and use manufacturing scale, marketing strength, product innovation, and channel expertise to grow Nathan's. Nathan's began as a 1916 Coney Island hot dog stand and was sold by the Handwerker family in 1987; the brand remains culturally notable for its July 4 hot-dog eating contest.

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