Smithfield Foods, Inc. (SFD), an American food company, Wednesday announced that it has agreed to buy all outstanding shares of Nathans Famous, Inc. (NATH), a food company and hotdog brand for $102 per share in cash bringing the total transaction to around $450 million.
The deal is expected to close in the first half of 2026 and Smithfield Foods expects the transaction to be immediately accretive to its adjusted diluted earnings per share from continuing operations. It is also surmising to improve operating efficiencies by generating anticipated annual run-rate cost synergies of approximately $9 million by the second anniversary of the transaction closing.
Further, the company believes it is bolstering its growth by securing long-term sales and cash flows from the Nathans Famous brand, driving growth from Packaged Meats segment of Nathans Famous brand that will become available across Smithfields well-established retail and foodservice sales channels.
Since March 2014, Smithfield Foods has held an exclusive license from Nathans Famous within the United States, Canada and Sams Clubs in Mexico for it to o manufacture, distribute, market and sell Nathans Famous branded hot dogs, sausages, corned beef and certain other ancillary products through the retail channel with the license set to expire in March 2032.
In pre-market activity, NATH shares were trading at $100.79, up 8.69% and on Tuesday, SFD shares closed at $23.37, down 0.34% on the Nasdaq.
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