UPS Announces $1.6 Billion Acquisition of Andlauer Healthcare to Boost Healthcare Logistics
Parcel delivery giant UPS (United Parcel Service) has confirmed its acquisition of Canada’s Andlauer Healthcare Group (AHG) for CAD $1.6 billion, a strategic move aimed at strengthening its healthcare logistics business. The deal will significantly expand UPS’s capabilities in the healthcare sector, which includes temperature-controlled and precision logistics solutions.
AHG operates nine distribution centers and 22 branches across Canada, providing third-party logistics and specialized transportation services for the healthcare industry. Under the terms of the agreement, AHG shareholders will receive CAD $55 per share in cash, offering a 31% premium over the stock’s last closing price of CAD $41.96.
Expanding Global Healthcare Capabilities
This acquisition complements UPS’s ongoing strategy to enhance its global healthcare portfolio, particularly its cold chain logistics. By incorporating AHG’s expertise and network, UPS will expand its service offerings to healthcare customers who require temperature-sensitive transportation solutions. This includes critical healthcare products such as pharmaceuticals and medical devices.
In line with its healthcare growth strategy, UPS also completed the acquisition of Frigo-Trans, a Germany-based company specializing in temperature-controlled logistics for biotech and pharma sectors, in January 2025.
Shifting Business Focus and Growth Strategy
In addition to expanding in healthcare logistics, UPS is also refining its overall business strategy. The company has been working on increasing its profit per package by targeting higher-yielding volumes. UPS recently announced plans to reduce its reliance on Amazon, its largest customer, with expectations of the volume from Amazon decreasing to around 50% of 2024 levels by mid-2026.
The AHG acquisition is expected to close by the second half of 2025, further solidifying UPS’s position as a leader in specialized logistics for the healthcare industry.
