The acquisition expands UPS's specialised cold chain network, adding customised third-party logistics solutions for temperature-sensitive healthcare shipments
UPS has expanded its cold chain and pharma capabilities across North America and around the world by completing the acquisition of Andlauer Healthcare Group (AHG) for $1.6bn.
AHG is headquartered in Canada and offers logistics, distribution and packaging solutions for healthcare manufacturers as well as airfreight forwarding, ground transportation, dedicated delivery and last-mile services. Airfreight forwarding comprises 4.5% of revenue for AHG and is carried out through ATS Healthcare.
UPS first announced the acquisition of AHG in April. With the completion of the purchase, the company said that the addition of AHG’s specialised cold chain network and expertise will enable UPS Healthcare customers to benefit from reduced transit times, enhanced end-to-end visibility, deepened global reach, and leading quality assurance.
“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, executive vice president 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.”
Michael Andlauer, founder and chief executive of AHG, will lead UPS Canada Healthcare and AHG to expand the businesses’ specialised capabilities and meet the needs of healthcare customers, said UPS.
The acquisition is the second investment in healthcare by UPS this year. In January, the express giant completed the acquisition of Germany-based Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe.
UPS Healthcare has 17m sq ft of cGMP and GDP-compliant healthcare distribution space globally. Services include inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics. UPS Healthcare also utilises the UPS Premier visibility service, track and trace technology and a global quality system.
