The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Smithfield Foods will acquire US hot dog maker Nathan’s Famous in an all-cash deal valued at approximately $450 million, moving to secure full ownership of one of its most recognisable licensed brands and strengthen growth across retail and foodservice.

The packaged meats group will pay $102 per share for Nathan’s Famous, a 12.4-times multiple of the brand owner’s trailing adjusted EBITDA, according to the companies.

Smithfield says the transaction will be immediately accretive to earnings and expects to generate around $9 million in annual cost synergies within two years of closing.

The deal gives Smithfield permanent control of the Nathan’s Famous brand, which it has manufactured, distributed and marketed under licence in North America since 2014. That licence, covering both retail and foodservice channels, was due to expire in 2032.

By bringing the brand fully in-house, Smithfield removes long-term licensing risk while gaining greater flexibility to expand the Nathan’s Famous range and push deeper into foodservice – a channel the company sees as a key growth opportunity for its higher-margin packaged meats business.

“Nathan’s Famous is a natural strategic fit,” said Smithfield chief executive Shane Smith, pointing to the company’s existing manufacturing scale, distribution network and product development capabilities.

Nathan’s Famous, best known for its all-beef hot dogs, distributes products across all 50 US states and more than 20 international markets through retail, foodservice and licensed restaurants.

While its standalone scale is modest, the brand carries strong recognition in US foodservice, sports venues and seasonal consumption occasions.

Smithfield says the acquisition would allow it to accelerate innovation under the Nathan’s Famous name, expand the portfolio beyond core hot dogs and better integrate the brand into its existing retail and foodservice sales infrastructure.

The deal also strengthens Smithfield’s packaged meats portfolio, which includes Eckrich and other value-added brands, at a time when US meat producers are increasingly prioritising branded, higher-margin products to offset volatility in commodity pork markets.

The transaction will be funded with cash on hand and is expected to close in the first half of 2026, subject to shareholder approval, US antitrust clearance and review by the Committee on Foreign Investment in the United States.

Nathan’s Famous chief executive Eric Gatoff said the deal provided a “compelling valuation” for shareholders and positioned the brand for its next phase of growth under an owner with deep retail and foodservice reach.