Smithfield Foods (NASDAQ:SFD) announced Wednesday that it will acquire iconic hot dog maker Nathan’s Famous (NASDAQ:NATH) in an all-cash transaction valued at $102 per share, or approximately $450 million in enterprise value.
The deal marks a major strategic shift for Smithfield, which has held the exclusive license to manufacture and distribute Nathan's retail products since 2014.
By acquiring the brand outright, the Virginia-based pork giant secures perpetual rights to the Nathan's name, eliminating renewal risks and allowing for deeper integration across its global retail and foodservice channels.
The offer represents a significant premium for Nathan's shareholders, valuing the company at 12.4x its last twelve months (LTM) adjusted EBITDA, or roughly 10x on a post-synergy basis.
The acquisition is expected to be immediately accretive to Smithfield’s adjusted diluted earnings per share.
Management has identified approximately $9 million in annual run-rate cost synergies, which they expect to fully realize by the second anniversary of the closing.
Smithfield, which recently returned to the public markets via a Nasdaq IPO, will fund the purchase using cash on hand.
The transaction is expected to finalize in the first half of 2026.