JERICHO, NY – Nathan’s Famous Inc. announced a Dutch tender offer to repurchase up to 500,000 shares of the company’s outstanding common stock. The maximum aggregate purchase price is set at $18 million.
“The company’s directors and executive officers do not intend to participate in the offer and do not intend to tender any of their shares, except that the company has been advised that the Petrocelli Family Foundation, a charitable organization, may sell up to 20,000 shares in the offer,” the company said in a news release. A.F. Petrocelli, a director of Nathan’s Famous, will continue to be one of the largest shareholders in the company even with the sale of 20,000 shares.
Nathan’s Famous currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam and 10 foreign countries through the company’s restaurant system, foodservice sales programs and product licensing activities. The company recently launched a design refresh in addition to a reduced-fat beef frank. In 2014, the John Morrell Food Group, a business unit of Smithfield Foods, Inc., entered into a licensing agreement with Nathan’s Famous to bring Nathan’s branded hot dogs, sausages and corned beef products to retailers nationwide.