UPS to Expand Complex Healthcare Logistics Capabilities With Andlauer Acquisition

UPS plans to strengthen its global offerings in complex healthcare logistics by acquiring Andlauer Healthcare Group (AHG), a Canada-based supply chain management company focused on solutions for the healthcare sector.

UPS agreed to acquire the firm for $1.6 billion and expects the transaction to close in the second half of the year, subject to customary closing conditions, it said in a Thursday (April 24) press release.

The planned acquisition will add AHG’s temperature-controlled facilities and specialized cold chain transportation capabilities to UPS Healthcare’s existing end-to-end cold chain solutions, according to the release.

“This acquisition marks another important step in our declaration to be the No. 1 complex healthcare logistics and premium international logistics provider in the world,” Kate Gutmann, executive vice president and president of international, healthcare and supply chain solutions at UPS, said in the release.

Upon the close of the transaction, AHG founder and CEO Michael Andlauer will lead UPS Canada Healthcare and AHG, per the release.

“Once the transaction is completed, the businesses will offer an even broader set of specialized logistics services to customers throughout Canada,” Andlauer said in the release.

UPS said in January 2024 that it planned to lean into opportunities in the healthcare field, which at the time was a $10 billion source of revenue for the company.

In September 2023, the company acquired MNX Global Logistics, a global time-critical logistics provider, saying it aimed to enhance UPS’ precision and capability in offering time-sensitive logistics solutions, particularly in healthcare and related industries.

At the time of the acquisition, MNX served multinational leaders in industries such as biopharmaceuticals, life sciences, high tech, medical devices, aviation and finance.

“Whether it’s to save a life or to get a grounded airplane back in the air faster, MNX will help UPS deliver what its customers need, when they need it, with even greater confidence,” UPS said in a September 2023 press release.

In August 2022, UPS purchased Italy-based healthcare logistics provider Bomi in a deal that added temperature-controlled facilities in 14 countries and nearly 3,000 Bomi team members to the UPS Healthcare network in Latin America and Europe.