UPS Healthcare acquires Canadian supply chain company for $1.6B
United Parcel Service has entered into an agreement to buy Andlauer Healthcare Group (AHG), a Canadian company that specializes in temperature-controlled shipments of sensitive products used by researchers, manufacturers and hospitals, for $1.6 billion, the companies announced Thursday.
The acquisition will grow the portfolio of UPS Healthcare, a division of the courier that works globally on supply chain shipments. AHG will allow UPS to expand its “end-to-end cold chain solutions,” enabling the safe shipment of perishables used in “next-generation treatments,” which the company said are in growing demand.
“AFG 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,” Kate Gutmann, executive vice president and president of international, healthcare and supply chain solutions at UPS said in a statement.
While AHG will become part of UPS Healthcare’s global shipping network, it will maintain its headquarters in Ontario. The company’s founder and CEO, Michael Andlauer, will remain in charge and lead UPS Healthcare’s Canadian division, the companies confirmed.
"I look forward to working with UPS to leverage its logistics capabilities to enhance AHG’s specialized transportation and healthcare logistics services to our clients," Andlauer said in another statement. "I am also excited that AHG employees will continue to have opportunities to grow and that UPS shares our cultural values."
The sale has been approved by Andlauer, the primary shareholder of AHG, and UPS is set to pay about $39.62 per share in cash to complete the buyout. Once approved, AHG will be delisted from public exchange markets.
Until then, Andlauer confirms his company will continue to pay out dividends to its shareholders and operate as normal.
The companies expect the transaction to receive regulatory approval and close in the second half of 2025.
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