UPS has bought Canada’s Andlauer Healthcare Group for $1.6 billion, giving the company a bigger presence in cold chain and pharmaceutical shipping across North America. The deal is the latest move in UPS’s push to grow its healthcare business and handle more temperature-sensitive products worldwide.

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Andlauer Healthcare Group, based in Ontario, runs specialized transportation and logistics operations for medical and pharmaceutical customers. UPS said the acquisition will help improve shipment visibility and provide customers with more reliable service for products that require careful temperature control.

“At UPS Healthcare, we are relentlessly focused on quality, improving patient outcomes and advancing healthcare delivery, and we are thrilled that Andlauer Healthcare Group, and its talented employees, share that focus,” said Kate Gutmann, Executive Vice President and President of International, Healthcare and Supply Chain Solutions for UPS. “We will provide industry-leading services to our global customers, built on a foundation of quality, precision, and speed all designed to help manage high-value, temperature-sensitive treatments.”

Expanding healthcare logistics across North America

Under the agreement, Andlauer shareholders will receive CAD $55 per share in cash, for a total purchase price of about CAD $2.2 billion (USD $1.6 billion). The deal gives UPS a stronger presence in Canada and expands its cold chain network across North America.

Michael Andlauer, founder and CEO of AHG, will lead UPS Canada Healthcare and Andlauer Healthcare Group under the new structure. UPS said his experience will help grow the company’s healthcare business and expand its specialized logistics services.

Part of a bigger healthcare push

UPS has been growing its healthcare business for several years, adding new cold chain facilities and expanding its reach into pharmaceutical and lab logistics. The company says this deal will give customers more flexibility and confidence when shipping time-critical healthcare products.

The healthcare division is one of UPS’s fastest-growing segments, supported by the company’s global network spanning more than 200 countries and territories.