The transaction, valued at up to $35 million, includes a New York facility built to FDA pharmaceutical standards. The companies also entered into a commercial agreement to supply store-brand gummy products to U.S. retailers.
The acquisition was first announced earlier this year. Since then, TopGum has continued to build out manufacturing capacity in North America, following its acquisition of Canadian gummy manufacturer Island Abbey and the opening of a new facility in Israel.
Pushing deep into growing categories
For TopGum, the deal is less about entering the gummy category and more about moving into adjacent areas of consumer health.
“This is a strategic transaction that gives TopGum a unique foothold in the emerging pharmaceutical gummy market,” Eyal Shohat, chief executive officer of TopGum, said in a press statement.
“The pharmaceutical gummy category is in its earliest innings, and we believe it will follow the same arc the dietary supplement market followed over the past 15 years,” he added.
According to the company, the acquired operation is developing both dietary supplement and pharmaceutical gummy products, including products being developed under the FDA OTC monograph framework and the agency’s 505(b)(2) pathway.
TopGum said several pharmaceutical gummy products are targeted for launch in 2027 and 2028 through a partnership with a multinational pharmaceutical company, with TopGum acting as the exclusive manufacturer.
Manufacturing closer to US customers
The acquisition also gives TopGum a domestic production base at a time when many supplement companies are reconsidering overseas sourcing and lead times.
The company said the latest investment is intended to support growing demand for gummy nutraceuticals across North America.
“We are always pushing the boundaries of what a gummy can do,” Jennifer Toomey, head of new product development, North America, told NutraIngredients.
“We understand people want to take gummies because they are looking for a more enjoyable way to take their supplements and so flavor is a high priority and that’s where we excel thanks to our roots in confectionery,” she added.
Alongside the acquisition, PLD entered a long-term commercial partnership with TopGum to distribute TopGum-manufactured products through store-brand programs.
“At PLD, we see gummies as an emerging platform for delivering healthcare across vitamins, minerals and supplements (VMS) and pharmaceutical products, which customers and consumers are increasingly asking for,” Evan Singer, president of P&L Development, said in a press release.
2026 expected to be an integration year
TopGum said it expects the acquired operation to contribute revenue in the low single-digit millions during 2026, and projected a negative EBITDA impact of approximately $2 million to $3 million during the consolidation period.
According to the company, the operation is expected to contribute more substantially in later years as commercialization activities expand.
