UPS Acquires Andlauer Healthcare Group for $1.6 Billion to Boost Healthcare Logistics

UPS Acquires Andlauer Healthcare Group for $1.6 Billion to Boost Healthcare Logistics

In a landmark move, United Parcel Service (UPS) has announced the acquisition of Canada-based Andlauer Healthcare Group (AHG) for approximately $1.6 billion USD (CAD $2.2 billion). This strategic acquisition aims to enhance UPS Healthcare’s global cold chain logistics capabilities, addressing the rising demand for temperature-controlled transportation and precision logistics solutions in the healthcare sector. The deal, expected to close in the second half of 2025, will integrate AHG’s specialized expertise into UPS Healthcare’s extensive network, reinforcing its position as a leader in complex healthcare logistics.

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Why AHG is Worth $1.6 Billion

Andlauer Healthcare Group, a dominant player in Canada’s healthcare logistics market, serves major pharmaceutical companies and distributors across North America. With a robust network specializing in cold chain transportation, AHG has solidified its reputation through strategic acquisitions and steady growth. Key milestones include:

  • 2020: Acquisition of TDS Logistics (now ATS Dedicated), expanding temperature-controlled transportation services.
  • 2021: Acquisitions of Skelton Canada, Skelton USA, and Boyle Transportation, strengthening cold chain capabilities and entering the U.S. life sciences market.
  • 2022: Acquisition of Logistics Support Unit (LSU), enhancing pharmaceutical transportation and complex supply chain management.
In 2024, AHG reported total revenue of CAD $650.5 million (approximately $482 million USD), a 0.4% increase from CAD $648.0 million in 2023. Net income was CAD $64.47 million, down 2.5% from CAD $66.14 million in 2023, while EBITDA grew 0.5% to CAD $164.6 million. AHG’s operations are divided into two core segments:

1. Healthcare Logistics (28% of Revenue)

This segment, generating CAD $180 million in 2024 (up 2.2% from 2023), includes logistics, distribution, and packaging solutions under brands like Accuristix and LSU. Key metrics:
  • Logistics and Distribution: CAD $163 million, up 2.4% year-over-year, with 9.2% growth in Q4 2024.
  • Packaging Solutions: CAD $16.94 million, up 1.1%, with a remarkable 25.2% surge in Q4.


2. Specialized Transportation (72% of Revenue)

Generating CAD $470 million in 2024 (down 0.3% from 2023), this segment covers temperature-controlled and non-temperature-controlled ground transportation, air freight forwarding, and last-mile delivery. Brands include ATS Healthcare, ATS Dedicated, Boyle Transportation, and Skelton Truck Lines. Key metrics:
  • Ground Transportation: CAD $425 million, down 1.1% due to challenges in the U.S. trucking sector.
  • Air Freight Forwarding: CAD $31.93 million, up 4.4%.
  • Last-Mile Delivery: CAD $73.85 million, up 7.3%.

Despite pressures in ground transportation, AHG’s logistics, distribution, packaging, and last-mile delivery segments demonstrated resilience, positioning the company as a valuable asset for UPS.


Why UPS is Acquiring AHG

Like competitors FedEx and DHL, UPS views healthcare logistics as a high-growth, high-margin sector to offset declines in traditional parcel delivery. According to Global Market Insights, the healthcare logistics market is projected to double from 2023 to 2032, reaching nearly $200 billion. The specialized requirements for transporting medical products, such as advanced warehousing and temperature-controlled shipping, offer significant profit potential.


Kate Gutmann, UPS Executive Vice President and President of International, Healthcare, and Supply Chain Solutions, emphasized the strategic fit: “Next-generation treatments are increasing complexity, driving demand for integrated end-to-end cold chain solutions. Acquiring AHG will enhance our capabilities, deliver superior patient outcomes, and support UPS’s growth. This marks a key step toward becoming the world’s leading complex healthcare logistics provider.”


UPS Healthcare, launched in 2019, has rapidly expanded through strategic investments. The company operates over 19.2 million square feet of cGMP- and GDP-compliant distribution space globally, offering services like inventory management, cold chain packaging, medical device storage, and clinical trial logistics. UPS aims to double its healthcare revenue to $20 billion by 2026, up from $10.5 billion in 2024, and acquisitions like AHG are critical to achieving this goal.

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UPS’s Broader Healthcare Logistics Strategy

The AHG acquisition builds on UPS’s recent investments in cold chain and healthcare logistics, particularly in Europe and North America:
  • Frigo-Trans and BPL (January 2025): UPS acquired these Germany-based firms, which offer temperature-controlled warehousing (from -196°C to +25°C) and pan-European cold chain transportation. This bolstered UPS’s end-to-end capabilities for temperature-sensitive medical logistics in Europe.
  • MNX Global Logistics (November 2023): This acquisition enhanced UPS’s time-critical logistics for medical clients, particularly in radiopharmaceuticals and temperature-sensitive products across the U.S., Europe, and Asia.


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By integrating AHG’s coast-to-coast Canadian network, including nine distribution centers and 22 branches, UPS will strengthen its North American cold chain capabilities, last-mile delivery, and specialized transportation services. Michael Andlauer, AHG’s founder and CEO, will lead UPS Canada Healthcare post-acquisition, ensuring continuity and expertise.



The $1.6 billion acquisition of Andlauer Healthcare Group by UPS is a pivotal step in expanding its healthcare logistics portfolio. By leveraging AHG’s expertise in cold chain transportation and specialized logistics, UPS is poised to meet the growing demand for complex, temperature-sensitive healthcare solutions. With a clear strategy to double its healthcare revenue by 2026, UPS continues to solidify its position as a global leader in medical logistics, delivering value to clients and patients alike.
For more information on healthcare logistics solutions, visit UPS Healthcare or Andlauer Healthcare Group.





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