UPS has agreed to acquire Andlauer Healthcare Group (AHG) in a $1.6 billion deal aimed at expanding its healthcare logistics capabilities across North America.

The acquisition, announced this week, is part of UPS’s strategy to strengthen its end-to-end services for pharmaceutical and medical customers who rely on temperature-controlled transportation and storage. The Canadian-based AHG provides third-party logistics (3PL) and specialized cold chain transport solutions, primarily for healthcare manufacturers.

Under the terms of the deal, AHG shareholders will receive CAD $55.00 per share in cash, totaling approximately CAD $2.2 billion. The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals.
“This acquisition marks another important step in our declaration to be the number one complex healthcare logistics and premium international logistics provider in the world,” said Kate Gutmann, executive vice president and president of international, healthcare, and supply chain solutions at UPS.

Upon completion of the acquisition, AHG founder and CEO Michael Andlauer will oversee UPS’s healthcare operations in Canada and continue to lead AHG. “UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality,” said Andlauer.

The move is part of a broader expansion of UPS Healthcare, which currently operates over 19 million square feet of cGMP- and GDP-compliant distribution space worldwide. AHG’s network of temperature-controlled facilities and coast-to-coast transport services is expected to enhance UPS’s ability to meet rising demand for precision logistics, particularly for biologics and specialty pharmaceuticals.

Michael Andlauer and the Andlauer Management Group, AHG’s controlling shareholder, have agreed to vote in favor of the transaction.

UPS reported $91.1 billion in revenue in 2024 and employs approximately 490,000 people globally.

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