UPS Healthcare expects to generate up to $10 billion from healthcare revenue in 2023, executives noted during the call.
In August 2022, UPS announced it would acquire European-based Bomi Group, a multinational healthcare logistics company, to bolster its capabilities in the global healthcare market. The deal closed in November 2022.
Doing so, Carol Tomé, UPS’ CEO said, “will also create more growth opportunities as we solve the complex healthcare logistics and delivery needs of our customers,” the August news release noted. The earnings call confirmed that “to date, revenue and cost synergy are running ahead of target,” since the acquisition was completed.
Since then, UPS Healthcare has begun to make moves in Europe and recently opened its first dedicated healthcare logistics facility in Giessen, Germany, according to an April 10 news release.
“In the first quarter of 2023, we expanded our global footprint by opening nearly 1 million square feet of dedicated healthcare space, including our first facility in Germany,” Ms. Tomé said during the earnings call. “Its location in the center of Germany connects our customer shipment, the fast-growing European healthcare market. … The facility is also close to our European air hub in Cologne, enabling customers to leverage the speed and reach of our global network.”
Additional details were not shared about when and where the seven new facilities will open.
The company also said it has plans to expand its UPS Premier offering for healthcare customers, which allows them more insight into delays and shipping status.
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