UPS expands healthcare reach with completion of Andlauer deal

Core Insights - UPS has acquired Andlauer Healthcare Group for $1.6 billion in cash, enhancing its logistics capabilities in the healthcare sector in Canada [1][2] - The acquisition aims to strengthen UPS's position in global healthcare logistics, particularly in North America, as the company focuses on high-value services [2][3] - UPS plans to double its healthcare logistics revenue to $20 billion by 2026 through organic growth and acquisitions [4] Company Overview - Andlauer Healthcare Group specializes in logistics and refrigerated transportation services for various healthcare products, including pharmaceuticals and medical devices [1][5] - The company generates nearly 60% of its revenue from temperature-controlled ground transportation, utilizing a mix of owner-operated and employee drivers [5] Strategic Focus - UPS is shifting resources towards the healthcare sector, where it can charge premium rates for value-added services, contrasting with its core domestic parcel business [3] - The acquisition of Andlauer will provide UPS Healthcare customers with reduced transit times, enhanced visibility, and a broader global reach [4]