Iconic Coney Island hot dog maker sold for $450 million

"Nathan's is on of America's most iconic brands. It began in 1916 when Nathan Handwerker opened a humble stand with a $300 loan and began selling hot dogs for a nickel. 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. The franchise has continued to expand, offering products in supermarkets across the U.S."

"Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan's Famous brand. With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan's Famous will allow us to take the brand to new heights. Smithfield has a previous relationship with Nathan's having held rights to produce and sell its products in the U.S. and Canada and at Sam's Clubs in Mexico since 2014."

Smithfield Foods agreed to acquire Nathan's Famous for $450 million, bringing the iconic hot dog brand into its Packaged Meats portfolio. Smithfield previously held licensing rights since 2014 to produce and sell Nathan's products in the U.S., Canada, and at Sam's Clubs in Mexico, with that license scheduled to expire in March 2032. Nathan's origins trace to 1916 when Nathan Handwerker opened a stand with a $300 loan and sold hot dogs for a nickel; the Handwerker family sold the business in 1987. The brand expanded into supermarkets and hosts an annual Coney Island hot dog eating contest that draws about 30,000 attendees and is televised on ESPN; Smithfield said the contest will continue.

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