Smithfield Foods, Inc. is set to acquire Nathan’s Famous for $450 million in an all-cash transaction.

Since March 2014, Smithfield Foods has held an exclusive license within the United States, Canada and Sam’s Clubs in Mexico to manufacture, distribute, market and sell Nathan’s Famous branded hot dogs, sausages, corned beef and certain other ancillary products through the retail channel, and to manufacture and distribute “Nathan’s Famous” branded hot dog and sausage products for the foodservice channel. The license is scheduled to expire in March 2032.

Successfully closing the acquisition will secure Smithfield’s rights to the brand into perpetuity and enable it to maximize the Nathan’s Famous brand growth across the retail and foodservice channels.

“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,” says Smithfield President and CEO Shane Smith. “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.”

The transaction represents a valuation of approximately 12 times Nathan’s Famous’s LTM adjusted EBITDA and a multiple of approximately 10 post-synergies. Smithfield Foods expects to achieve annual cost synergies of approximately $9 million by the second anniversary of the deal closing.

“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” says 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.”

Under the terms of the definitive merger agreement, Smithfield Foods will acquire all of Nathan’s Famous’ issued and outstanding shares of its common stock for $102 per share.

Nathan’s Famous’ Board of Directors approved the merger agreement with Smithfield Foods and agreed to recommend that the Nathan’s Famous stockholders vote to adopt the merger agreement.

The transaction is expected to close in the first half of 2026, subject to conditions set forth in the merger agreement and other customary closing conditions.