Smithfield Foods, Inc. and Nathan’s Famous, Inc. said Wednesday that they have entered into a definitive merger agreement for Smithfield Foods to acquire all of Nathan’s Famous’ issued and outstanding shares for $102.00 per share in cash, representing an enterprise value of approximately $450 million. The acquisition will be completed with cash on hand.

Since March 2014, Smithfield Foods has held an exclusive license for foodservices and retail channels. Closing the acquisition will secure Smithfield’s rights to the brand into perpetuity and enable it to maximize the Nathan’s Famous brand growth across retail and foodservice channels.

Eric Gatoff, CEO of Jericho, NY-based Nathan’s Famous, said, “This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders. As a longtime 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 established in 1916 when Nathan Handwerker opened a hot dog stand in Coney Island. It operates both owned and franchised restaurants.

Photo: The original Nathan’s Famous in Coney Island. Photo credit: Ajay Suresh.