Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has completed its acquisition of Sierra Sage Herbs LLC (SSH), highlighting the company's maiden entry into the US CBD market.
SSH is a leading consumer packaged goods company focused on plant-based and CBD products under the Green Goo, Southern Butter and goodgoo brands with products in the CBD, first aid, beauty, sexual wellness, women’s health and pet categories.
It has an established product suite of plant-based and CBD products, additional revenue channels, in-country supply chain and manufacturing, broadened distribution and relationships with major US retail groups.
Moving forward, Creso has already secured a number of non-binding agreements to distribute SSH’s products in Australia, Taiwan, Singapore and other territories, as well as advanced plans to considerably progress growth.
“Major growth opportunity”
Creso CEO and managing director William Lay said: “Completion of this transaction highlights a major growth opportunity for Creso Pharma.
“In recent months, we have been working closely with SSH’s management team and delivered a number of agreements that can unlock value for shareholders.
“We plan to expedite similar opportunities in the near term to increase SSH’s existing revenue profile and utilise the group’s established footprint to benefit other business divisions.”
Synergistic benefits
Creso plans to accelerate the broader launch of goodgoo products in the US, leveraging the group’s existing in-house marketing expertise, brand recognition, US market knowledge and sales capability.
The company plans to utilise SSH’s relationships with established retail partners, alongside its existing direct-to-consumer customer base to scale operations.
This acquisition provides a strong foundation to advance Creso’s sports-focused CBD range, ImpACTIVE.
ImpACTIVE products will be marketed and sold through SSH’s existing channels, which has the potential to result in sales uptake and relationships with large retailer groups.
Forward plan
Both parties have a strong track record in product development and will collaborate to bring new ranges and delivery methods to market.
Creso and SSH's management are in discussions around a number of new opportunities, including the functional mushroom sector to drive growth.
Furthermore, the company will also leverage SSH’s existing personnel and expertise in consumer products to bring new products to market upon completion of the transaction.