Eshbal acquires Gluten Free Nation
The deal brings into Eshbal‘s portfolio a commercial bakery known for breads, rolls, muffins and sweet goods sold across retail, foodservice and e-commerce channels, and is presented as a strategic step to enhance capacity and product breadth ahead of the company’s 2026 to 2028 roadmap.
CANADA – Eshbal Functional Food Inc. has acquired the business of Gluten Free Nation (GFN), a prominent Houston, Texas-based producer of premium gluten-free baked goods, in a strategic move to enhance its North American presence in the rapidly expanding gluten-free market.
The transaction was executed through Eshbal’s US subsidiary, Eshbal USA Inc., for a total upfront consideration of US$736,424.58, comprising US$236,424.58 in cash and US$ 500,000 in 3,846,154 common shares of Eshbal issued at US$0.13 per share.
Eshbal Functional Foods acquires the assets of US-based Gluten Free Nation on the second attempt after a deal fell through in August last year, with Eshbal stating at the time it “did not mature to a final agreement”.
The deal also incorporates potential earn-out milestone payments tied to Eshbal USA achieving specific revenue targets from GFN product sales in 2026 and 2027, aligning incentives for post-acquisition growth.
Founded in 2010 by Randi Markowitz, affectionately known as “The Gluten Free Guru,” Gluten Free Nation has built a loyal following by delivering certified gluten-free breads, rolls, muffins, cakes, cookies, and other sweet baked goods that prioritize exceptional taste, texture, and quality without flavor compromises.
GFN’s products, produced in a dedicated 100% gluten-free facility, are distributed nationwide across 49 US states through major retail channels such as Walmart.com, Kroger, Albertsons, Safeway, HEB, Raley’s, and Fresh Thyme Market, as well as foodservice and e-commerce platforms.
This acquisition grants Eshbal immediate access to GFN’s established brand recognition, robust distribution network, and specialized product expertise, enabling the launch of Eshbal’s own gluten-free and better-for-you items, such as pita breads, cookies, hot dog buns, bread crumbs, flours, baking mixes, and protein snacks, through these proven channels.
The move supports Eshbal’s broader growth strategy in the gluten-free sector, which continues to surge amid rising consumer demand for allergen-free, health-conscious alternatives driven by celiac disease awareness and dietary preferences.
By integrating GFN’s operations, Eshbal anticipates commercial synergies, expanded product rosters, and accelerated market penetration in North America, where its Israel-headquartered innovation complements GFN’s US-centric footprint.
This deal underscores ongoing consolidation in the specialty food space, positioning Eshbal to capitalize on the US gluten-free market projected to exceed US$15 billion by 2027.
The announcement did not disclose detailed financial terms in the initial release; Eshbal said it will provide further operational and financial updates as integration progresses.
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