Nathan’s Famous stock surged 9.6% in premarket trading after Smithfield Foods announced an all-cash buyout offer of $102.00 per share. The deal values the iconic hot dog brand at approximately $450 million in enterprise value, representing a 12.4 times multiple of its last twelve months adjusted EBITDA.

Smithfield, which has licensed the Nathan’s brand since 2014, moves to secure perpetual rights and full ownership of the brand it currently manufactures and distributes through 2032. The acquisition is expected to be immediately accretive to earnings, with projected annual cost synergies of about $9 million by the second year after closing.

The transaction is slated to close in the first half of 2026, pending shareholder and regulatory approvals. Nathan’s board members controlling nearly 30% of shares have already agreed to vote in favor. Smithfield’s CEO stated the deal allows the company to own all top brands in its Packaged Meats portfolio.