UPS has revealed plans to pay about $1.6 billion to acquire Andlauer Healthcare Group. a Canadian company that specializes in healthcare supply chain services. The action is in line with UPS’s continuous plan to improve its standing in the healthcare logistics industry.
According to the terms of the deal, UPS will pay 55 Canadian dollars per share, or about $39.62 USD in cash, for Andlauer. The transaction’s total value is approximately $2.2 billion in Canadian dollars, representing a 31% premium over Andlauer’s most recent closing stock price.
UPS to Acquire Andlauer Healthcare
Andlauer offers logistics services specifically designed for the healthcare industry, such as temperature-controlled transportation, which is becoming more and more important when it comes to moving delicate items for UPS. Following the completion of the deal, UPS Healthcare will integrate Andlauer into its network, maintaining its Vaughan, Ontario, headquarters. Michael Andlauer, the company’s founder and CEO, will assume a leadership position managing both UPS Canada Healthcare and the Andlauer business division.
Kate Gutmann, UPS’s head of supply chain, international, and healthcare solutions, highlighted the acquisition’s strategic significance. She noted that changing medical procedures are making logistics more difficult and raising the need for full cold-chain services. “This acquisition allows us to scale our offerings and meet the growing needs of healthcare customers worldwide,” Gutmann said.
Depending on shareholder approval and regulatory clearance, UPS and Andlauer plan to close the deal in the second half of 2025. Support for the deal has come from Michael Andlauer, who indirectly owns more than 80% of the voting power and more than half of the company’s outstanding shares. The agreement has also been approved by Andlauer Healthcare’s board, which advises shareholders to support it.
The business anticipates delisting Andlauer’s subordinate voting shares from the Toronto Stock Exchange following the completion of the acquisition. The company plans to continue paying out a quarterly dividend of C$0.12 per share until then. With the goal of providing cutting-edge solutions throughout its global network, UPS is continuing to invest in the healthcare logistics sector, and this acquisition represents another important step in that direction.
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