UPS Acquires Canada’s Andlauer Healthcare for $1.6 Billion to Boost Healthcare Logistics

ATLANTA, April 24, 2025 – UPS, the global parcel and logistics giant, announced a definitive agreement to acquire Canada’s Andlauer Healthcare Group in an all-cash deal valued at $1.6 billion, aiming to strengthen its healthcare logistics capabilities.

AHG operates 9 distribution centers and 22 branches across Canada, specializing in third-party logistics and temperature-controlled transportation for the healthcare sector. In 2024, AHG generated C$650 million ($468.4 million) in revenue, with over half from ground transportation services.

Under the agreement, AHG shareholders will receive C$55 per share in cash, representing a 31% premium to the stock’s last closing price. The deal is expected to close in the second half of 2025, subject to shareholder and regulatory approvals.

Following the close of the transaction, Michael Andlauer, founder and CEO of AHG, will lead UPS Canada Healthcare and AHG, further expanding the companies’ specialized capabilities to meet the evolving needs of healthcare customers.

This acquisition aligns with UPS’s broader healthcare strategy, following its recent purchase of Germany-based Frigo-Trans and Biotech & Pharma Logistics to boost its European footprint. UPS Healthcare plans to grow its revenue from $10.5 billion in 2024 to $20 billion by 2026.

“Next-generation treatments are driving more complexity than ever, expanding the needs of healthcare customers and increasing demand for the integrated, end-to-end cold chain solutions UPS Healthcare provides around the world,” said Kate Gutmann, EVP and president of International, Healthcare and Supply Chain Solutions for UPS.