Nathan’s Famous bought by Chinese-owned Smithfield – Business News
Pork processor Smithfield Foods stated Wednesday it’s gobbling up iconic hot-dog model Nathan’s Famous in a $450 million deal.
Smithfield – a Chinese-owned food processor primarily based in Virginia – pays $102 a share so as to add the century-old model to its portfolio, a almost 10% premium on Nathan’s close on Tuesday.
Smithfield has held an unique license to fabricate and sell Nathan’s Famous merchandise, together with its sizzling canine, sausages and corned beef, within the US and Canada and at Sam’s Club shops in Mexico since 2014. That license had been set to run out in 2032.
Nathan’s Famous is understood for its annual sizzling dog-eating competitors held at Nathan’s Coney Island on July 4. Joey Chestnut, left, was topped males’s champion final yr. Paul Martinka
Nathan’s Famous shares soared 8.7% to $100.81 Wednesday afternoon. Shares in Smithfield, which is a subsidiary of Hong Kong-listed WH Group, dipped about 0.5%.
“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,” Smithfield President and CEO Shane Smith stated.
The packaged meats business is Smithfield’s largest sector. It stated the deal – which is slated to close within the first half of 2026 – will rake in annual financial savings of $9 million.
Nathan’s Famous is understood for its annual sizzling dog-eating contest held at its Coney Island location on the Fourth of July annually. Winners – like repeat champion Joey Chestnut, who’s gained a record-breaking 17 instances – are awarded a “mustard belt” for eating essentially the most sizzling canine.
“We absolutely plan to continue this great American tradition that routinely draws a very large TV audience on ESPN, a crowd estimated at 30,000 and extensive media coverage around the globe,” a Smithfield spokesperson informed The Post.
Last yr, Chestnut was declared the boys’s champion after he scarfed down 70.5 sizzling canine in entrance of a raucous Coney Island crowd – not fairly enough to beat his own report of 76 franks.
Smithfield already holds an unique license to fabricate and sell Nathan’s Famous merchandise within the US and Canada and at Sam’s Club shops in Mexico. REUTERS
Nathan’s was began in 1916 by immigrant Nathan Handwerker, who borrowed $300 from entertainers Jimmy Durante and Eddie Cantor to open a sizzling canine stand. Nathan’s sizzling canine initially offered for simply 5 cents apiece.
Nathan’s Famous later expanded nationwide beneath Handwerker’s son, Murray.
Nathan’s Famous started as a sizzling canine stand in 1916. Luiz C. Ribeiro for New York Post
“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” stated 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.”
