"Smithfield Foods, a leading meat packing company based in Virginia, has announced the acquisition of Nathan's Famous, the iconic Coney Island hot dog brand, for $450 million. Nathan's Famous, which began as a 5-cent hot dog stand in 1916, has grown into a beloved American brand known for its annual hot dog-eating contest held every July 4 at its flagship location on the Coney Island Boardwalk."
"Smithfield, which has held exclusive rights to produce and sell Nathan's products in the U.S., Canada, and select stores in Mexico since 2014, will acquire all outstanding shares of Nathan's Famous for $102 each. According to WECT, the acquisition is expected to close in the first half of this year. Nathan's Famous has faced inflationary pressures, with sales costs rising 27% in its most recent quarter."
"Despite these challenges, Nathan's CEO Eric Gatoff expressed confidence in the acquisition, stating that Smithfield has shown a strong commitment to investing in and growing the brand. Brooklyn Paper reported that the acquisition will allow Smithfield to maximize Nathan's brand growth across retail and foodservice channels. Smithfield President and CEO Shane Smith described the deal as a "meaningful step" in the company's evolution."
Smithfield Foods is acquiring Nathan's Famous for $450 million, buying all outstanding shares at $102 apiece. Smithfield already held exclusive U.S., Canada and select Mexico production and sales rights since 2014. The deal is expected to close in the first half of the year and aims to deliver about $9 million in annual savings within two years. Nathan's has faced inflationary pressures, with sales costs rising 27% in the most recent quarter. Nathan's CEO Eric Gatoff praised Smithfield's commitment to invest and grow the brand. Smithfield plans to expand Nathan's across retail and foodservice while preserving the Coney Island hot dog-eating contest tradition.
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