Globenewswire·2026-01-21 11:45Core Viewpoint - Smithfield Foods has announced a definitive merger agreement to acquire Nathan's Famous for $102.00 per share, totaling an enterprise value of approximately $450 million, which will enhance Smithfield's portfolio in the packaged meats sector [1][6]. Group 1: Acquisition Details - The acquisition will secure Smithfield's rights to the Nathan's Famous brand indefinitely, allowing for maximized growth across retail and foodservice channels [3][7]. - The transaction is valued at approximately 12.4 times Nathan's Famous's last twelve months (LTM) adjusted EBITDA and about 10.0 times post-synergies [4]. - Smithfield anticipates achieving annual cost synergies of around $9 million by the second anniversary of the deal closing [4][8]. Group 2: Strategic Implications - The acquisition is expected to be immediately accretive to Smithfield's adjusted diluted earnings per share from continuing operations [5]. - It will enhance Smithfield's ability to grow the high-margin Packaged Meats segment by leveraging the Nathan's Famous brand and expanding its product portfolio [8]. - The deal will also improve operating efficiencies and increase foodservice sales volume by utilizing Smithfield's established infrastructure [8]. Group 3: Transaction Timeline and Conditions - The transaction is expected to close in the first half of 2026, pending approval from Nathan's Famous stockholders and regulatory bodies [9]. - The Board of Directors of Nathan's Famous has approved the merger agreement and will recommend stockholders vote in favor of the transaction [6][10].