TopGum Industries, an Israeli maker of dietary supplements and gum candies, announced on Sunday that it has signed a five-year deal to develop nutritional supplements for a major multinational.
TopGum described the unnamed entity as a “large international company worth more than $150 billion that produces and markets its products in approximately 200 countries around the world.” Under the agreement, the Sderot-based manufacturer will develop gum-based nutritional supplements for the international company that are expected to be marketed and sold throughout Europe. Shares of TopGum traded in Tel Aviv jumped more than 20% in intraday trading on Sunday.
During the first two years of the contract, both parties are committed to a period of exclusivity. TopGum said it expects to get the first orders from the second quarter of 2023.
“The agreement we have been working on over the past year is an anchor of our accelerated growth plan, and for the benefit of its realization, a new factory is also being established, designed to tripling the company’s production,” said TopGum CEO Amichai Bar-Nir. . “We are proud to add this agreement to a series of other strategic agreements that we have signed with leading international companies.”
“These agreements are a leap forward for the company, to build the infrastructure necessary to increase the company’s production and sales volumes at the current plant and for the new plant, which is expected to start production in the second half of 2023,” Bar-Nir said. added.
In January this year, TopGum announced the start of construction of a new $30 million, 11,000 square meter factory to help the manufacturer triple its production capacity. The new facility will include robotics and automated systems. TopGum claims that its current facility can produce one million chewing gums, or 2.5 tons, per hour.
Founded in 2004, TopGum is engaged in the development, production and marketing of gummies and nutritional supplements based on dietary fiber and natural ingredients.
TopGum is controlled by founder and chairman, Hai Hayoun, Roi Lusternik and the AP Partners fund – a partnership created by private equity firm AP Partners, Murray Arkin and Discount Capital. The company began trading on the Tel Aviv Stock Exchange in 2021, raising a total of NIS 100 million ($30 million) from the public, based on a company valuation of NIS 442 million, according to a filing with the Tel Aviv Stock Exchange.
Last year, TopGum launched its line of sugar-free vegan gummy supplements in addition to its line of gummy supplements containing botanical extracts, vitamins and minerals in concentrated doses.