Smithfield Foods, Inc. Announces Acquisition of Nathan’s Famous, Inc. for $450 Million: Unlocking Growth Opportunities and Synergies
Smithfield Foods, Inc. has announced a definitive merger agreement to acquire Nathan’s Famous, Inc. for $102.00 per share in cash, totaling approximately $450 million. The deal represents a 10% premium over Nathan’s current share price. The acquisition will give Smithfield full ownership of the Nathan’s Famous brand, which it has been licensing since 2014. The transaction is expected to close in the first half of 2026, pending regulatory approvals and shareholder consent.
Smithfield's President and CEO, Shane Smith, stated that the acquisition of Nathan’s Famous is a significant move for the company, allowing them to own all top brands in their Packaged Meats portfolio and unlock new growth opportunities. The deal is projected to be immediately accretive to adjusted earnings, with annual cost synergies of around $9 million expected by the second anniversary of closing. The transaction values Nathan’s Famous at approximately 12.4 times its last twelve months adjusted EBITDA.
Members of Nathan’s Famous Board of Directors holding about 29.9% of outstanding shares have agreed to vote in favor of the acquisition. The deal allows Nathan’s Famous to declare and pay two regular quarterly cash dividends during the pending closing period. Approval from the majority of Nathan’s Famous common stockholders and regulatory clearances, including antitrust review and approval from the Committee on Foreign Investment in the United States, are required for the transaction to proceed.
Goldman Sachs is acting as the financial advisor to Smithfield Foods, while Jefferies is advising Nathan’s Famous on the merger. For more information on stock valuation and investment opportunities, utilize our Fair Value calculator to assess the potential of NATH and other stocks in the market. Discover hidden gems with significant upside potential for your investment portfolio.