UPS’s acquisition of Andlauer Healthcare Group is a done deal

Atlanta-based global freight transportation and logistics services provider UPS said today that its pending acquisition of Vaughan, Ontario-based Andlauer Healthcare Group (AHG) has been made official.

As per the terms of the deal UPS said that AHG stakeholders receive $55 per share in cash (CAD), with a total purchase price of $2.2 billion (CAD), or $1.6 billion USD.

This deal was initially announced in April by UPS, when it said this deal would bring AHG’s temperature-controlled warehouses and trucking network into UPS’s healthcare business, helping the company handle sensitive medical shipments across North America.

AHG specializes in moving pharmaceutical products, vaccines, and other temperature-sensitive treatments that require cold storage. It operates nine distribution centers and 22 branches across Canada. In 2024, the company pulled in around $468 million in revenue, more than half of it from ground transportation.

UPS said, at the time, this acquisition will help it keep up with rising demand for more complex medical deliveries.

And it added that bringing AHG into the fold highlights how it is committed to providing global specialty capabilities as a leading provider of complex healthcare logistics. With the addition of AHG’s specialized cold chain network and expertise, UPS Healthcare customers will benefit from reduced transit times, enhanced end-to-end visibility, deepened global reach, and leading quality assurance, the company added.

“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, EVP 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.”

AHG Founder and CEO Michael Andlauer will lead UPS Canada Healthcare and AHG to expand the businesses’ specialized capabilities and meet the needs of healthcare customers, according to UPS, adding that his track record and commitment to excellence further strengthen the company’s capabilities and drive continued innovation.

“UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality,” Andlauer said in April. “The businesses will offer an even broader set of specialized logistics services to customers throughout Canada.”

UPS said in April this is part of its ongoing plan to become the top global player in healthcare logistics. The company has been a presence in Canada since 1975 and now employs about 13,500 people there. The AHG deal is seen as a major step toward expanding its healthcare footprint in the country and beyond.

On the company's third quarter earnings call last week, UPS CEO Carol  Tomé said that UPS has a goal to become the number one complex healthcare logistics provider in the world.

“The addition of Anne Lauer's capabilities will further strengthen our solutions in global healthcare, logistics, particularly in North America,” she said. 

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