New acquisition poised to strengthen TopGum’s position as one of the leading CDMOs in the gummy supplement industry with an annual revenue rate in excess of USD 100 million

Tel-Aviv — TopGum Industries, Ltd. (TASE: TPGM), a global leader in the development and manufacturing of gummy supplements, announces it has acquired Island Abbey Nutritionals™, a leading CDMO specializing in supplement gummies and lozenges, located in Prince Edward Island, Canada. This strategic acquisition significantly expands TopGum’s manufacturing and technological capabilities, strengthening its position as a leading global provider of innovative gummy supplements.

The transformative acquisition marks a major milestone in TopGum’s journey to revolutionize the dietary supplement industry. It serves as a cornerstone in TopGum’s strategy to drive the growth of the “Enjoyables” supplement segment through organic expansion and strategic acquisitions. The transaction is expected to propel TopGum’s annual revenue run-rate beyond USD100 million, further solidifying its position as the partner of choice to Tier-1 brands and customers worldwide.

Island Abbey’s pioneering innovation

Founded in 2004, Island Abbey has established itself as a leader in gummy and lozenge delivery formats for dietary supplements. Under the leadership of CEO Dean Williams, it recorded remarkable growth in recent years, driven by its R&D and operational excellence.

Island Abbey operates a state-of-the-art facility spanning 65,000 ft², in which tens of millions of dollars were invested in the last couple of years. Equipped with advanced manufacturing technologies, including starchless depositing, center-fill capabilities, and automated bottling and packaging lines, the facility adheres to stringent quality standards such as FDA, NSF, GMP, SQF, and Health Canada certifications.

Strategic synergies

The acquisition bolsters TopGum’s strategic focus to deepen its foothold in the US market. By integrating Island Abbey’s advanced capabilities, TopGum will establish an integrated supply chain with production, bottling, and warehousing capabilities across two continents. The combined expertise and expanded capacity will enable TopGum to meet increasing global demand for high-quality, differentiated gummy supplements — delivering exceptional taste and reliability to its partners.

Opening new horizons

“Island Abbey brings a unique combination of strategic customers, advanced technologies, and a professional, experienced team,” says Eyal Shohat, CEO of TopGum. “Together with TopGum’s longstanding expertise, this partnership opens new horizons for innovation and growth. Our combined teams will continue to develop advanced solutions that deliver a wellness experience that is fun, easy, and tasty. We are reinforcing our commitment to our business partners and customers worldwide as we embark on this exciting new chapter in TopGum’s global growth story.”

As part of the transaction, Island Abbey will maintain its operational independence while leveraging TopGum’s global reach and resources. Island Abbey’s 95 employees will remain in place, led by CEO Dean Williams, a veteran of the consumer goods and nutritional supplement industries. Williams will be joining TopGum’s Executive Leadership team. 

“I’m honored to be part of this pivotal moment for Island Abbey,” notes  Dean Williams, CEO of Island Abbey. “This acquisition reflects our success in advancing supplement solutions across Canada and the US. The combination of these two entities is poised to redefine the gummy supplement market.”

A vision for growth and innovation

“We are deeply impressed by Island Abbey’s journey, particularly under Dean’s leadership”, expresses Hagai Stadler, Chairman of TopGum. “We are proud to welcome Island Abbey to the TopGum family. Together, we will build on Island Abbey’s legacy and create a vital component of TopGum’s mission to become a dominant global player in the supplement industry.”

Stadler adds: “This acquisition is a steppingstone to realizing our vision of leading the gummy supplement revolution. I extend my gratitude to the shareholders of Island Abbey for their trust, and to everyone involved in executing this transaction.”

Transaction details

TopGum will pay USD20 million plus an earn out payment based on Island Abbey’s 2025 results. The transaction is expected to close in Q1 2025, pending all required regulatory and third-party business approvals. 

About TopGum

TopGum Industries, Ltd. is a disruptive, industry-leading company specializing in the development and manufacturing of functional gummy supplements. Founded in 2004, the company has earned global recognition for integrating science, technology, and exceptional organoleptic profiles to produce gummies that deliver health benefits while offering superior taste and texture.

With advanced R&D capabilities and cutting-edge manufacturing, TopGum excels in creating innovative solutions that set industry standards – including its fiber-based Gummiceuticals^TM, TopCaps^TM micro-encapsulation technology, and high dosage of active ingredients. TopGum’s high-quality functional gummy portfolio reflects years of intensive R&D and investment in a state-of-the-art manufacturing facility. 

The company provides bespoke gummies to some of the world’s largest brands in the dietary supplement industry in more than 20 countries.

Committed to clean-label formulations, TopGum specializes in plant-based, non-GMO, and allergen-free gummies, catering to the growing demand for sustainable and natural products.

Headquartered in Israel, TopGum employs over 250 professionals, including leading food technologists, pharmaceutical engineers, and chemists. The company is listed on the Tel Aviv Stock Exchange (TASE) and is jointly owned by AP Partners, Discount Capital, Arkin Investments, Chai Hayon, and Roi Lusternik.