UPS to acquire Andlauer Healthcare for US $1.6B

CANADA – UPS has announced plans to acquire Canada’s Andlauer Healthcare Group (AHG) for US$ 1.6 billion, aiming to bolster its healthcare logistics capabilities.

The acquisition, expected to close in the second half of 2025, will enhance UPS’s cold chain services, crucial for transporting temperature-sensitive medical products. ​

AHG operates nine distribution centers and 22 branches across Canada, specializing in third-party logistics and temperature-controlled transportation for the healthcare sector.

The deal offers AHG shareholders CAD $55 (US $39.6) per share, a 31% premium over the stock’s last closing price. ​

This move aligns with UPS’s strategy to grow its healthcare segment, which generated approximately US$ 10.5 billion in revenue in 2024.

The company aims to double this figure to US $20 billion by 2026 through acquisitions and organic growth.

Earlier this year, UPS acquired Germany-based Frigo-Trans and Biotech & Pharma Logistics to strengthen its European healthcare logistics services. ​

Michael Andlauer, AHG’s founder and CEO, will lead UPS Canada Healthcare and AHG post-acquisition.

He emphasized the shared commitment to quality and patient-centric services between the two companies. ​

The acquisition is part of UPS’s broader effort to focus on higher-margin sectors like healthcare, especially as it reduces reliance on major customers such as Amazon.

In January, UPS announced plans to decrease Amazon-related volumes to approximately 50% of year-end 2024 levels by mid-2026. ​