Nathan’s Famous is set to be acquired by Smithfield Foods in a deal valuing the company at about $450 million.

Under the agreement, the packaged meat distributor will acquire all outstanding shares of the burger chain, superseding a licensing relationship that has been in place for more than a decade.

“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,” said Eric Gatoff, CEO of Nathan’s Famous.

Since 2014, Smithfield has held an exclusive license to manufacture, distribute, market and sell Nathan’s Famous branded hot dogs, sausages and related products across the US, Canada and Sam’s Club locations in Mexico. This was due to run until March 2032.

Smithfield president and CEO Shane Smith said the acquisition secures rights to the iconic hotdog brand “into perpetuity” and will drive growth across retail and foodservice channels.

“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,” he added.

The transaction is expected to close in the first half of the year, subject to regulatory approvals.

Established in 1936, Smithfield Foods is one of the largest pork producers and packaged meat distributors in the world. It is now owned by Chinese company WH Group – formerly known as Shuanghui Group – for $4.72 billion.