The Federal Trade Commission has approved UPS’ $1.6 billion acquisition of Andlaur Healthcare Group, a Canadian provider of temperature-controlled logistics and distribution services for the healthcare sector.
The green light allows UPS to proceed with the transaction first announced in April, as the company continues to deepen its push into healthcare logistics.
Under the deal, AHG shareholders will receive $55 per share in cash (Canadian currency), valuing the acquisition at approximately $1.6 billion U.S. dollars. Once completed, the medical device distributor will enhance UPS Healthcare’s cold chain capabilities, according to an April news release from UPS.
UPS said the acquisition would help its ability to serve healthcare customers who need highly specialized, temperature sensitive transportation and storage, especially for biologics and next generation therapies.
The deal is part of UPS’ strategy to pivot from traditional parcel delivery to high-growth sectors. According to a January Bloomberg report, UPS Healthcare generated $10 billion in revenue in 2023 and aims to double this by 2026, with other investments.
