UPS to acquire Andlauer Healthcare Group for $1.6 billion

UPS has entered into a definitive agreement to acquire Andlauer Healthcare Group (AHG), a leading North American supply chain management company headquartered in Canada and offering customised third-party logistics and specialised cold chain transportation solutions for the healthcare sector.

Under the terms of the agreement, AHG shareholders will receive CAD $55 per share in cash, representing a total purchase price of approximately CAD $2.2 billion ($$1.6 billion), says an official release from UPS. "The 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."

Kate Gutmann, EVP and President, International, Healthcare and Supply Chain Solutions, UPS says: "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. 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."

Michael Andlauer will lead UPS Canada Healthcare and AHG to expand the businesses’ specialised capabilities and meet the needs of healthcare customers, the release added.

"UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality, " says Andlauer. "Once the transaction is completed, the businesses will offer an even broader set of specialized logistics services to customers throughout Canada."

The transaction is likely to c lose in the second half of 2025, subject to AHG’s shareholder approval, customary regulatory reviews and approvals and customary closing conditions, the release added.