- Ahead of Creso Pharma’s (CPH) acquisition of Sierra Sage Herbs next month, the US-based company has increased its distribution network by 20,000 points of sale
- The growth extends Sierra Sage Herbs’ reach into 110,000 US stores, including pharmacy chains and major retail groups
- Once the acquisition completes, Creso intends to leverage cross-selling opportunities
- The acquisition of Sierra Sage deal includes US$21 million (A$28 million) scrip upfront plus performance-based payments
- Creso Pharma is trading down 3.85 per cent at 7.5 cents
Creso Pharma’s (ASX:CPH) acquisition target, the US-based Sierra Sage Herbs, has increased its US distribution footprint by 20,000 points of sale.
The growth extends Sierra Sage Herbs’ reach into 110,000 stores – including pharmacy chains and major retail groups – across the US.
Sierra Sage Herbs’ product line Green Goo targets dry skin, foot care, colds, flus, allergies and natural pain relief.
Creso Pharma announced the proposed acquisition of Sierra Sage Herbs in early February when it forged a Membership Purchase Interest Agreement for US$21 million (A$28 million) scrip upfront plus additional payments based on achieving revenue targets.
Creso claims the footprint expansion will underpin sales growth for Colorado-based Sierra Sage Herbs, which generated over US$8 million in CY2020 and US$5.7 million in CY2021.
It plans to work with the target on cross selling initiatives to expand sales of Creso’s cannabis and hemp derived therapeutic, nutraceutical and lifestyle products.
CPH CEO and Managing Director William Lay said once the acquisition is complete, the company will leverage the points of sale.
“Sierra Sage Herbs has grown an exceptionally strong distribution footprint in traditional bricks and mortar stores in the US, with many of the country’s large retail groups and leading pharmacy chains,” he said.
“This is a very important development for Creso Pharma and once the acquisition completes, we will have the ability to leverage these points of sale to drive sales of our own established product suite, while benefiting from the ongoing sale of SSH products.”
Shares in Creso Pharma are trading down 3.85 per cent at 7.5 cents at 3:07pm AEST.