Smithfield Foods Acquires Nathan's Famous for $450 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
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Source: Benzinga
- Acquisition Deal: Smithfield Foods announced the acquisition of Nathan's Famous for $450 million, offering $102 per share, with a target close in the first half of 2026, effectively eliminating expiration risks associated with a long-standing licensing agreement.
- Brand Control: This acquisition grants Smithfield perpetual control over Nathan's Famous, further solidifying its position in the packaged foods industry and securing one of America's most recognizable food brands.
- Financial Impact: The deal is expected to be immediately accretive to adjusted diluted earnings per share and project approximately $9 million in annual cost savings by the second year post-closing, driven by operational efficiencies.
- Strategic Significance: Smithfield's CEO stated that this acquisition is a significant step in strengthening its packaged meats portfolio, aiming to leverage its manufacturing scale and marketing capabilities to drive further growth for the Nathan's Famous brand.
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About NATH
Nathan’s Famous, Inc. is a licensor, wholesaler and retailer of products marketed under its Nathan’s Famous brand, including its Nathan’s World Famous Beef Hot Dogs. The Company distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 20 foreign countries. The Branded Product Program segment is engaged in the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. The Product licensing segment includes royalties, from licensing a range of its branded products, including its hot dogs, sausage and corned beef products, frozen French fries and additional products, through retail grocery channels and club stores throughout the United States. The Restaurant operations segment is engaged in the sale of its products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
