United Parcel Service (UPS, Financial) announced a $1.6 billion acquisition of Canada's Andlauer Healthcare Group to enhance its healthcare logistics operations. Andlauer operates nine distribution centers and 22 branches across Canada, providing third-party logistics and specialized transportation solutions to the healthcare sector.
Under the agreement, Andlauer shareholders will receive CAD 55 per share in cash, a 31% premium over the previous closing price of CAD 41.96. UPS aims to expand its global cold chain services for healthcare clients, including temperature-controlled and precision logistics solutions.
UPS has been pursuing both organic and inorganic growth in sectors like healthcare. In January, UPS acquired Germany-based Frigo-Trans and its sister company Biotech & Pharma Logistics, which offer temperature-controlled healthcare transportation services in Europe.
The company has focused on increasing per-package profitability and announced plans to reduce low-margin business from its largest customer, Amazon. According to a February SEC filing, UPS expects Amazon-related business volume to decrease to about 50% of late 2024 levels by mid-2026, as it shifts focus to higher-margin segments.
The acquisition of Andlauer is expected to close in the second half of this year.
