Iconic Coney Island hot dog hawker Nathan's Famous is sold for $450 million

"Nathan's Famous, which opened as a 5-cent hot dog stand in Coney Island more than a century ago, has been sold to packaged meat giant Smithfield Foods in an all-cash $450 million deal, the companies announced Wednesday. Smithfield, which has held rights to produce and sell Nathan's products in the U.S. and Canada and at Sam's Clubs in Mexico since 2014, will acquire all of Nathan's outstanding shares for $102 each."

"Like almost every food company, Nathan's has been under significant inflationary pressure. Nathan's sales costs of branded products rose 27% compared with last year in its most recent quarter, the company said in a filing with the U.S. Securities and Exchange Commission. There was a 20% increase in the average cost per pound of hot dogs, it said. Nathan Handwerker opened the first Nathan's hot dog stand on Coney Island in 1916 with a $300 loan, according to the company."

Smithfield Foods acquired Nathan's Famous in an all-cash $450 million deal, paying $102 per share to buy all outstanding shares. Smithfield previously held rights to produce and sell Nathan's products in the U.S., Canada and at Sam's Clubs in Mexico since 2014. Nathan's has faced inflationary pressure, with branded product sales costs rising 27% year-over-year and a 20% increase in the average cost per pound of hot dogs. Nathan Handwerker opened the first Nathan's hot dog stand on Coney Island in 1916 with a $300 loan. Nathan's maintains cultural prominence through its annual Coney Island July 4th hot dog-eating contest, which draws international contestants and large crowds.

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