(Scotty Perry/Bloomberg)
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. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and UPS Supply Chain Solutions is No. 5 on the TT 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, Miss., in 2021 in a deal valued at $80 million.
