Nathan’s Famous, Founded by Jewish Immigrant, Sold to Smithfield for $450 Million

NEW YORK (AP/VINnews) — Nathan’s Famous, the iconic hot dog brand that began as a modest stand founded by a Jewish immigrant on Brooklyn’s Coney Island more than a century ago, has agreed to be sold to Smithfield Foods in an all-cash deal valued at about $450 million, the companies announced Wednesday.

Smithfield said it will acquire all outstanding shares of Nathan’s Famous for $102 per share. The packaged-meat company has produced and distributed Nathan’s products in the U.S. and Canada since 2014 and at Sam’s Club locations in Mexico.

Nathan’s traces its origins to 1916, when Nathan Handwerker, a Jewish immigrant who arrived in the United States with little money, opened a five-cent hot dog stand using a $300 loan. The stand quickly gained popularity and eventually became a national brand, even after the Handwerker family sold the business to investors in 1987.

Like much of the food industry, Nathan’s has faced rising costs in recent years. In its latest quarter, the company reported a sharp increase in expenses tied to inflation, including higher meat prices. Despite the pressure, the brand has continued to expand its retail and licensing business.

Nathan’s also holds an outsized place in American popular culture because of its annual Fourth of July hot dog-eating contest at its original Coney Island location. The event, televised nationally, draws tens of thousands of spectators and competitors from around the world. Joey Chestnut is the reigning champion.

Smithfield said it expects the contest and Nathan’s branding to continue unchanged and projected annual cost savings of about $9 million within two years of closing the deal.

Nathan’s board, which controls nearly 30% of the company’s shares, approved the transaction and plans to recommend it to shareholders. The acquisition is expected to close in the first half of the year, pending regulatory approval.

Smithfield, which owns several major meat brands, reported more than $14 billion in sales last year. Nathan’s reported about $150 million in revenue and $24 million in profit in its most recent fiscal year.