Pork processor Smithfield Foods said Wednesday it is gobbling up iconic hot-dog brand Nathan’s Famous in a $450 million deal.
Smithfield – a Chinese-owned food processor based in Virginia – will pay $102 a share to add the century-old brand to its portfolio, a nearly 10% premium on Nathan’s close on Tuesday.
Smithfield has held an exclusive license to manufacture and sell Nathan’s Famous products, including its hot dogs, sausages and corned beef, in the US and Canada and at Sam’s Club stores in Mexico since 2014. That license had been set to expire in 2032.
Nathan’s Famous shares soared 8.7% to $100.81 Wednesday afternoon. Shares in Smithfield, which is a subsidiary of Hong Kong-listed WH Group, dipped about 0.5%.
“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.
The packaged meats business is Smithfield’s largest sector. It said the deal – which is slated to close in the first half of 2026 – will rake in annual savings of $9 million.
Nathan’s Famous is known for its annual hot dog-eating contest held at its Coney Island location on the Fourth of July each year. Winners – like repeat champion Joey Chestnut, who’s won a record-breaking 17 times – are awarded a “mustard belt” for eating the most hot dogs.
“We absolutely plan to continue this great American tradition that routinely draws a very large TV audience on ESPN, a crowd estimated at 30,000 and extensive media coverage around the globe,” a Smithfield spokesperson told The Post.
Last year, Chestnut was declared the men’s champion after he scarfed down 70.5 hot dogs in front of a raucous Coney Island crowd – not quite enough to beat his own record of 76 franks.
Nathan’s was started in 1916 by immigrant Nathan Handwerker, who borrowed $300 from entertainers Jimmy Durante and Eddie Cantor to open a hot dog stand. Nathan’s hot dogs initially sold for just 5 cents apiece.
Nathan’s Famous later expanded nationwide under Handwerker’s son, Murray.
“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” said Nathan’s Famous CEO Eric Gatoff.
“As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”
