UPS has announced a major expansion into healthcare logistics after it entered into an agreement to acquire the Andlauer Healthcare Group Inc. for $1.6 billion USD (€1.4 billion).
Andlauer is a North American supply chain management company headquartered in Canada that offers customised third-party logistics and specialised cold chain transportation solutions for the healthcare sector.
This transaction will extend the global portfolio of end-to-end cold chain capabilities available to UPS Healthcare customers, who increasingly seek temperature-controlled and precision logistics solutions.
“Next-generation treatments are driving more complexity than ever, expanding the needs of healthcare customers and increasing demand for the integrated, end-to-end cold chain solutions UPS Healthcare provides around the world,” said EVP and President of International, Healthcare and Supply Chain Solutions for UPS, Kate Gutmann.
“Andlauer Healthcare Group will help us deliver expanded capability to our customers, driving best in class patient outcomes while contributing to our overall growth plans across the business.
“This acquisition marks another important step in our declaration to be the number one complex healthcare logistics and premium international logistics provider in the world.”
Under the terms of the agreement, Andlauer shareholders will receive $55 CAD (€35) per share in cash, representing the total purchase price of approximately $2.2 billion CAD (USD $1.6 billion, €1.4 billion).
Following the finalisation of the transaction, Andlauer founder and CEO, Michael Andlauer, will lead UPS Canada Healthcare and Andlauer to expand the businesses’ specialised capabilities and meet healthcare customers’ needs.
“UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality,” said Andlauer.
“Once the transaction is completed, the businesses will offer an even broader set of specialised logistics services to customers throughout Canada.”
The transaction is targeted for closure in the second half of 2025, subject to Andlauer’s shareholder approval, customary regulatory reviews and approvals and other standard closing conditions.
Michael Andlauer and Andlauer Management Group Inc., the controlling shareholders of Andlauer Healthcare Group, have agreed to vote their Andlauer shares in favour of the transaction.
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