Smithfield agrees to acquire Nathan’s Famous for US$450 million
Transaction values Nathan’s at a near 10% premium to its prior close
USA – Smithfield Foods has reached an agreement to purchase Nathan’s Famous for US$450 million, bringing one of the United States’ best-known hot dog brands under the direct ownership of the country’s largest pork processor.
According to details reported by Reuters, Smithfield will pay US$102 per share for Nathan’s Famous, representing an almost 10% premium to the company’s closing price.
Following news of the transaction, Nathan’s Famous shares climbed about 9% to US$100.94 in premarket trading, while Smithfield shares rose roughly 2%.
Smithfield is majority owned by Hong Kong-listed WH Group, and its stock has gained around 6% since debuting on the market in 2025.
The acquisition expands Smithfield’s packaged meats portfolio, where the company already holds an exclusive license to produce and sell Nathan’s Famous products across the United States, Canada, and Sam’s Club outlets in Mexico.
Smithfield chief executive Shane Smith said the purchase allows the company to fully own its leading packaged meat brands, describing the move as a continuation of its long-term portfolio strategy.
Nathan’s Famous traces its origins to a small Coney Island hot dog stand opened in 1916 by immigrant entrepreneur Nathan Handwerker, who launched the business with US$300 borrowed from entertainers Jimmy Durante and Eddie Cantor.
Under the leadership of Handwerker’s son, Murray, the brand expanded beyond its original location into a national food business with retail and licensing operations.
The company is also widely recognized for hosting its annual Fourth of July hot dog eating contest at Coney Island, where winners receive a ceremonial mustard belt.
At the 2025 competition, Joey Chestnut claimed the men’s title after consuming 70.5 hot dogs and buns in 10 minutes, according to information published by the company.
Smithfield said the transaction is expected to close in the first half of the year, subject to customary regulatory approvals and closing conditions.
Financial backdrop
The deal follows a period of strong financial performance for Smithfield, which previously reported a sharp improvement in quarterly results driven by higher pork prices and steady demand.
The company’s total revenue rose 12.4% to US$3.75 billion, reflecting higher pricing across both fresh pork and packaged meat segments.
Fresh pork prices increased by about 12%, while packaged meats recorded gains of more than 9%, supported by reduced hog supplies in the United States and sustained consumer interest.
Company executives said pork continues to attract cost-conscious shoppers as beef prices remain at historically high levels.
Smithfield has raised its full-year earnings outlook, pointing to stronger margins from pricing discipline and a growing mix of value-added pork products.
Despite these gains, the company said exports remain under pressure, particularly to China, where tariffs of around 57% on certain pork byproducts have weighed on shipment volumes.
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