Island Abbey Nutritionals, the maker of Honibe honey-based gummies and lozenges, has agreed to be acquired by TopGum Gummiceuticals for US$20 million (C$29.1 million) plus future considerations.

Charlottetown-based Island Abbey has been a cornerstone of the life sciences community on P.E.I. since its founding in 2004 by entrepreneur John Rowe. The company developed a way to transform honey, with all its nutritional benefits, into a hard form and market it as candy and a healthy lozenge. Its additive-free Honibe products are sold through such retail chains as Sobeys, Loblaws and Whole Foods Market.

TopGum, an Israeli-based maker of functional gummy supplements, posted the announcement Thursday in U.S. trade papers, including Nutraceuticals World, saying the parties expected to close the deal in the first quarter of 2025. It said the buyer would pay US$20 million plus an earnout based on Island Abbey’s 2025 results.

“Island Abbey Nutritionals’ success has been built on a winning combination of unique technology, commitment to global market and sales development, and visionary leadership,” said PEI BioAlliance CEO Rory Francis in an email. “This will be amplified under TopGum’s growth strategy and we welcome them to the BioAlliance cluster community.”

The TopGum announcement said Island Abbey will maintain its operational independence, and its 95 employees will remain in place. Island Abbey CEO Dean Williams will continue to lead the P.E.I. company and will join TopGum’s executive leadership team.

“This acquisition reflects our success in advancing supplement solutions across Canada and the U.S. the combination of these two entities is poised to redefine the gummy supplement market.” said Williams in the statement.

With a focus on R&D and operations, Island Abbey occupies a 65,000-square-foot facility in Charlottetown, in which tens of millions of dollars were recently invested. The statement says the company has advanced manufacturing technologies such as starchless depositing, center-fill capabilities, and automated bottling and packaging lines. It has Health Canada certification.

The transaction is expected to raise TopGum’s annual revenue run-rate (an annualized revenue projection based on current sales figures) above US$100 million. TopGum said it will establish an integrated supply chain with production, bottling, and warehousing capabilities across two continents, to better meet global demand for differentiated gummy supplements.

“Island Abbey brings a unique combination of strategic customers, advanced technologies, and a professional, experienced team,” said Eyal Shohat, CEO of TopGum. “Together with TopGum’s longstanding expertise, this partnership opens new horizons for innovation and growth.”