Nathan’s Famous, the iconic brand known for its humble beginnings as a 5-cent hot dog stand on Coney Island more than 100 years ago, has entered a new chapter. The company announced on Wednesday that it has been acquired by Smithfield Foods, a leading name in packaged meats, for $450 million in an all-cash transaction.

Since 2014, Smithfield has held the rights to produce and distribute Nathan’s products across the U.S., Canada, and at Sam’s Clubs in Mexico. As part of this significant acquisition, Smithfield will purchase all outstanding Nathan’s shares at a price of $102 each. The deal is anticipated to be finalized in the first half of 2026.

Following the announcement, Smithfield’s stock saw a notable increase, rising nearly 9% to reach $100.81 per share during midday trading.

Smithfield projects that the acquisition will lead to annual savings of approximately $9 million within two years after the deal’s closure.

“Having partnered with Smithfield for many years, we’ve witnessed their unwavering dedication to enhancing our brand while upholding the highest standards of quality and customer service,” remarked Eric Gatoff, CEO of Nathan’s Famous.

The board of directors at Nathan’s, which collectively holds or controls around 30% of the company’s common stock, has given its approval for the buyout. They have also recommended that shareholders vote in favor of the deal.

Smithfield, which also owns the Gwaltney bacon and Armour frozen meat brands, rang up more than a billion dollars in operating profit in 2024 on sales of $14.1 billion. It’s on track to eclipse both those figures when it reports its fourth-quarter results.

Smithfield shares were unchanged in midday trading Wednesday at $23.39.

In fiscal 2025, Nathan’s reported profit of $24 million on revenue approaching $150 million.