UPS grows healthcare logistics capabilities with acquisitions
10 / 09 / 2024
Photo: UPS
UPS has struck a deal to grow its healthcare logistics capabilities with the acquisition of Germany-based Frigo-Trans and its sister company BPL.
Once completed, the acquisitions will boost end-to-end temperature-sensitive and time-critical logistics services throughout Europe, said the US-headquartered company.
“The fast-paced innovation in the pharmaceutical industry is creating the need to have more integrated cold and frozen supply chains,” said UPS executive vice president and president of international, healthcare and supply chain solutions Kate Gutmann.
“Frigo-Trans will help deepen our portfolio of solutions for our customers and accelerate our journey to become the number one complex healthcare logistics provider in the world addressing their needs.”
Headquartered in Fußgönheim, Frigo-Trans’ network includes temperature-controlled warehousing that covers six temperature zones from cryopreservation (-196°C) to ambient (+15° to +25°C); a Pan-European cold chain transportation solution; and temperature-controlled and time-critical freight forwarding capabilities.
Duesseldorf-based BPL offers individual transport management for shipping of time-critical and temperature-sensitive products for biopharma customers. BPL manages a network of air and ocean freight carriers along with customs clearance to meet the cross-border needs of customers. Temperature-controlled packaging is also provided.
The acquisition is expected to close in the first quarter of 2025, subject to regulatory reviews and approvals. The purchase price has not been disclosed.
In July, UPS also entered into an agreement to acquire Mexican express delivery company Estafeta, including a fleet of six aircraft.
UPS’ efforts to build its business with acquisitions follow a difficult 2023 for the company. The latest IATA World Air Transport Statistics (WATS) report shows that UPS suffered from economic challenges and labour contract disputes last year that saw demand, measured in cargo tonne-kilometers (CTKs), drop 10.4%.
