Nathan’s Famous, the Coney Island institution known for its hot dogs, has been sold to meat packaging company Smithfield Foods for $450 million, the company announced Wednesday.
Smithfield’s had an existing, exclusive license to manufacture and sell the company’s products in the U.S., Canada, and select stores in Mexico. That deal began in 2014 and was set to expire in 2032, but will continue “into perpetuity.”
The acquisition, announced in a Smithfield’s statement, “will secure Smithfield’s rights to this iconic brand into perpetuity and enable it to maximize the Nathan’s Famous brand growth across the retail and foodservice channels.”
Smithfield President and CEO Shane Smith said that the deal was a “meaningful step” in the company’s evolution.
“Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand,” Smith said in a statement. “With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan’s Famous will allow us to take the brand to new heights.”
Eric Gratoff, CEO of Nathan’s Famous, called the acquisition a “natural step.”
“It provides a compelling valuation for stockholders,” he said. “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.”
Smithfield’s added that the acquisition will help expand Nathan’s portfolio, build customer awareness and bolster the company’s existing meat/pork presence. By 2028, the transaction is expected to achieve nine million dollars.
Nathan’s Famous was founded in 1916 by Nathan Handwerker, where the iconic bites were sold for a nickel thanks to a $300 loan and his wife’s secret recipe. Over a century later, they continue to be a landmark of the city and home to the July 4 hot-dog-eating competition. Last year, defending champion Joey Chestnut finished 70.5 hot dogs and buns. Both companies said they would keep the annual contest intact.
