UPS to Acquire Andlauer Healthcare Group for $1.6 Billion, Strengthening its Global Offerings in Complex Healthcare Logistics
Acquisition will Enhance End-to-End Capabilities and Service to Healthcare Customers Needing Temperature-Controlled Logistics Solutions in North America
UPS (NYSE:UPS) today announced that it has entered into a definitive agreement to acquire Andlauer Healthcare Group Inc. (TSX:AND) ("AHG"), a leading North American supply chain management company headquartered in Canada and offering customized third-party logistics and specialized cold chain transportation solutions for the healthcare sector.
Under the terms of the agreement, AHG shareholders will receive CAD $55.00 per share in cash, representing a total purchase price of approximately CAD $2.2 billion (USD $1.6 billion). 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 Kate Gutmann, EVP and president of International, Healthcare and Supply Chain Solutions for UPS. "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."
UPS values the expertise, experience, and track record of AHG's management team and employees. Following the close of the transaction, Michael Andlauer will lead UPS Canada Healthcare and AHG to expand the businesses' specialized capabilities and meet the needs of healthcare customers.
"UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality," said Michael Andlauer, founder and CEO of AHG. "Once the transaction is completed, the businesses will offer an even broader set of specialized logistics services to customers throughout Canada."
Once closed, UPS Healthcare will benefit from AHG's temperature-controlled facilities and specialized cold chain transportation capabilities.
Additional Transaction Details
Closing of the transaction is targeted for the second half of 2025, subject to AHG's shareholder approval, customary regulatory reviews and approvals, and other customary closing conditions.
Michael Andlauer and Andlauer Management Group Inc., the controlling shareholder of AHG, have agreed to vote their AHG shares in favor of the transaction.
For more information about UPS Healthcare's innovations and customer-driven solutions, visit Healthcare.ups.com and about.ups.com.
About UPS
UPS (NYSE:UPS) is one of the world's largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, "Moving our world forward by delivering what matters," the company's approximately 490,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at ups.com, about.ups.com and investors.ups.com.
About UPS Healthcare
UPS Healthcare delivers unparalleled healthcare logistics expertise to its customers around the world. UPS Healthcare has 19.2+ million square feet of cGMP and GDP-compliant healthcare distribution space globally. Services include inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics. UPS Healthcare's global infrastructure, its UPS® Premier visibility service, its track and trace technology, and its global quality system are well-suited to meet today's complex logistics demands for the pharmaceutical, medical device, and laboratory diagnostic industries. Visit Healthcare.ups.com for more information.
About AHG
AHG (TSX:AND) is a leading and growing supply chain management company offering a robust platform of customized 3PL and specialized transportation solutions for the healthcare sector. AHG's 3PL services include customized logistics, distribution, and packaging solutions for healthcare manufacturers across Canada. AHG's specialized transportation services, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients' healthcare transportation needs. Through its complementary service offerings, available across a coast-to-coast distribution network, AHG strives to accommodate the full range of its clients' specialized supply chain needs on an integrated and efficient basis. For more information on AHG, please visit: www.andlauerhealthcare.com.
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