Iconic Coney Island hot dog hawker Nathan's Famous 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 in Coney Island in 1916 with a $300 loan, according to the company."

"Nathan's has an outsized cultural presence in the U.S. both because of its history and the famous, or infamous, hot dog-eating contest held at its flagship Coney Island shop, where contestants from around the world gather every July 4 to see who can down the most hot dogs in 10 minutes. American Joey Chestnut is the reigning Nathan's hot dog-eating champion after eating 70.5 hot dogs and buns last year."

Smithfield Foods will acquire Nathan's Famous in an all-cash $450 million deal at $102 per share, taking ownership of all outstanding shares. Smithfield has produced and sold Nathan's products in the U.S., Canada, and at Sam's Clubs in Mexico since 2014. Nathan's faced significant inflationary pressure, with branded-product sales costs up 27% year over year and the average cost per pound of hot dogs rising 20%. Nathan Handwerker opened the first Coney Island stand in 1916 with a $300 loan; the family sold the business to investors in 1987. The flagship remains on the original lot and hosts an annual July 4 hot dog-eating contest televised on ESPN, with Joey Chestnut as the reigning champion.

Read at NBC New York