Coney Island fixture Nathan’s Famous sold for $450 million to Smithfield Foods

It was announced Jan. 21 that Coney Island staple Nathan’s Famous has been sold to Smithfield Foods for $450 million.

Since March 2014, Smithfield Foods has held an exclusive license from Nathan’s Famous in the United States, Canada and Sam’s Clubs in Mexico for it to manufacture, distribute, market and sell the branded hot dogs, sausages, corned beef and other products through the retail channel.

Smithfield Foods, Inc. is an American food company with a leading position in packaged meats and pork products.

“The Nathan’s Famous acquisition is a meaningful step in the progression of Smithfield Foods allowing us to own all of the top brands in our Packaged Meats portfolio and unlock new growth opportunities for our largest segment,” said Smithfield President and CEO Shane Smith. “Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand. With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan’s Famous will allow us to take the brand to new heights.”

The acquisition will secure Smithfield’s rights to the Nathan’s brand into perpetuity and enable it to maximize the Nathan’s Famous brand growth across the retail and foodservice channels.

“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” said Eric Gatoff, CEO of Nathan’s Famous. “As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”

Nathan’s Famous was started in 1916 by Nathan Handwerker. According to its website, Handwerker started his nickel hot dog stand on Coney Island, with a $300 loan and his wife’s secret recipe. 

“At the time, he had no idea how famous those hot dogs would be,” the website states. “He had no idea that millions around the globe would tune in to see how many of those hot dogs could be consumed in 10 minutes, or that they would be available to consumers around the world in retail and restaurants.”

The Coney Island location has hosted the popular annual Nathan’s Hot Dog Eating Contest.