Chinese-owned pork producer gobbles up iconic American hot dog maker
It looks like a case of wiener take all.
Nathan’s Famous, an iconic American hot dog maker and fast-food chain, was sold to Smithfield Inc., a Chinese-owned pork producer, in a $450 million all-cash deal.
The two companies announced the merger in a statement Tuesday. Smithfield Foods will acquire all of Nathan’s Famous shares for $102 each, according to the announcement.
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"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," Shane Smith, Smithfield CEO and president, said in the statement.
Smithfield Foods expects to "achieve annual cost synergies of approximately $9 million by the second anniversary of the deal closing," according to the announcement.
Smithfield Foods held an exclusive license within the United States, Canada and Sam’s Clubs in Mexico for the company to manufacture, distribute, market and sell "Nathan’s Famous" branded hot dogs, sausages, corned beef and other products.
The license was granted in March 2014 and was set to expire in March 2032. The acquisition would secure Smithfield’s rights to the brand in perpetuity, according to the announcement.
"This combination is a natural fit and provides compelling valuation for Nathan's Famous stockholders," said Eric Gatoff, the CEO of Nathan's Famous.
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"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."
Smithfield Foods’ is owned by WH Group, a Chinese pork and meat processing company.
The group conducts operations through the companies Shuanghui Development, China’s largest meat processing company; Morliny Foods Holding Limited, a European multinational meat processing company; and Smithfield Foods, according to its website.
WH Group acquired Smithfield in 2013 in a $4.7 billion deal, according to Reuters. The acquisition was reportedly aimed at "tapping the massive supplies of U.S. meats for export to China."
WH Group was reportedly working with banks to take the pork producer public in the U.S. in 2023.
The company permanently closed 35 hog farm sites in Missouri and laid off 92 employees as a result of the closure, according to a Missouri Worker Adjustment and Retraining Notification Act (WARN) notice in August 2023.
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Nathan’s Famous was created by Nathan Handwerker in 1916, according to the company. With a $300 loan, Handwerker started a hot dog stand on Coney Island and sold the dogs for a nickel.
Since its inception, Nathan’s has become an American staple, known for not only its hot dogs, but its annual hot dog eating contest.
The annual hot dog eating contest takes place outside the chain’s original store at the corner of Surf and Stillwell in Coney Island, located in Brooklyn, New York.
Top competitive eaters attempt to scarf down as many hot dogs as they can in 10 minutes to win the coveted Mustard Belt, according to the Nathan’s Famous website.
Joey Chestnut remains the reigning champion among men after eating 70½ hot dogs. It was Chestnut’s 17th Mustard Belt win. Miki Sudo, with 33 hot dogs and buns eaten, won her 11th Mustard Belt in 2025 in the women’s category.
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Smithfield said the contest, which is broadcast annually on ESPN, will continue.
Fox Business contacted Smithfield and has not received a response at the time of publication.