UPS Bolsters Health Unit With $1.6 Billion Deal for Andlauer
[Stay on top of transportation news: .]
UPS Inc. agreed to acquire Canada’s Andlauer Healthcare Group Inc. for $1.6 billion, building out the package handler’s growing business transporting goods for health care customers.
AHG shareholders will receive C$55 a share in cash, according to a statement April 24. The deal is expected to close in the second half of this year.
UPS has been reorienting around higher-margin business lines, including health care, to offset softness in the traditional package delivery coming out of the pandemic-driven e-commerce boom. The company aims for $20 billion in revenue in the health segment by 2026, double the total from 2023.
AHG specializes in temperature-controlled transportation services for medical treatments. CEO Michael Andlauer will lead UPS Canada Healthcare after the deal closes.
UPS ranks No. 1Ìýon theÌýTransport Topics Top 100 list of the largest for-hire carriersÌýin North America, andÌýUPS Supply Chain Solutions is No. 5Ìýon theÌýTT Top 100 list of the largest logistics companies.
Andlauer acquired T.F. Boyle Transportation, a truckload carrier and provider of specialized transportation logistics in Billerica, Mass., in 2021 in a deal valued at $80 million.
Want more news? Listen to today's daily briefing belowÌýor go here for more info:
