Smithfield Foods has agreed to acquire all outstanding shares of Nathan’s Famous in an all-cash transaction valuing the iconic hot dog brand at approximately $450 million, or $102 per share. The deal, unanimously approved by Nathan’s board and supported by directors controlling 29.9% of its shares, removes the expiration date on Smithfield’s existing 2014 licensing agreement, which had been set to lapse in 2032. Closing is expected in the first half of 2026, subject to shareholder and regulatory approvals, including Hart-Scott-Rodino clearance and CFIUS approval.

By bringing Nathan’s Famous fully under its ownership, Smithfield secures perpetual rights to manufacture, market and distribute the brand across retail and foodservice channels in the U.S., Canada and select Latin American markets. Smithfield’s CEO highlighted the opportunity to leverage the company’s manufacturing scale, marketing capabilities and product innovation expertise to fuel new growth for one of America’s best-known beef hot dog brands and to integrate it seamlessly into Smithfield’s broader packaged-meats portfolio.

The acquisition is expected to be immediately accretive to adjusted diluted earnings per share. Smithfield forecasts approximately $9 million in annual cost savings by the second full year following closing, driven by operational efficiencies and tighter channel integration. The purchase price represents roughly 12.4 times Nathan’s last-twelve-months adjusted EBITDA and about 10.0 times EBITDA on a post-synergy basis.

Smithfield intends to fund the transaction entirely from existing liquidity, which stood at $3.069 billion as of September 28, 2025, including $773 million in cash and cash equivalents and $2.297 billion of undrawn capacity under committed credit facilities. The absence of a financing condition underscores management’s confidence in both its balance sheet strength and the strategic merits of fully owning the Nathan’s Famous brand.