Nutraceuticals maker Creso Pharma Ltd. said it signed an agreement to acquire Colorado-based consumer packaged goods company Sierra Sage Herbs (SSH) in an all-stock deal worth $21 million.
Australia-based Creso Pharma said it intends to take a 100% interest in SSH through subsidiary Creso Pharma US, giving the company a strong foothold in the U.S. market.
What Creso gains
The deal provides Creso Pharma a platform to introduce its CBD products to U.S. consumers through SSH relationships with large retail groups representing 90,000 points of sale, and more than 150,000 direct consumer customers. The company also takes over SSH’s established suite of products including a line of CBD.
Founded in 2008, SSH, based in Lyons, Colorado, had gross revenues of $5.7 million in 2021, down from $8 million in 2020. That falloff is attributable to delays in the acquisition process with Creso Pharma, which impacted digital marketing and product procurement, according to a Creso Pharma press release.
Creso Pharma said it intends to appoint SSH co-founder and CEO Jodi Scott as Executive Director and President of US Operations.