UPS has announced that it has entered into a definitive agreement to acquire Andlauer Healthcare Group Inc. (AHG), a North American supply chain management company headquartered in Canada, offering customised third-party logistics and specialised cold chain transportation solutions for the healthcare sector.

Under the terms of the agreement, AHG shareholders will receive CAD$55.00 per share in cash, representing a total purchase price of approximately CAD$2.2 billion (US$1.6 billion).

UPS said this transaction will extend the global portfolio of end-to-end cold chain capabilities available to UPS Healthcare customers, who increasingly seek temperature-controlled and precision logistics solutions.

"Next-generation treatments are driving more complexity than ever, expanding the needs of healthcare customers and increasing demand for the integrated, end-to-end cold chain solutions UPS Healthcare provides around the world," said Kate Gutmann, EVP and president of International, Healthcare and Supply Chain Solutions for UPS.

"Andlauer Healthcare Group will help us deliver expanded capability to our customers, driving best-in-class patient outcomes while contributing to our overall growth plans across the business."

"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," Gutmann added.

UPS noted that following the close of the transaction, Michael Andlauer will lead UPS Canada Healthcare and AHG to expand the businesses' specialised capabilities and meet the needs of healthcare customers.

"UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality," Andlauer, founder and CEO of AHG, said.

"Once the transaction is completed, the businesses will offer an even broader set of specialised logistics services to customers throughout Canada," he added.

Once closed, UPS said its Healthcare service will benefit from AHG's temperature-controlled facilities and specialised cold chain transportation capabilities.

The transaction is targeted to close in the second half of 2025, subject to AHG's shareholder approval, customary regulatory reviews and approvals, and other customary closing conditions.

UPS noted that Michael Andlauer and Andlauer Management Group Inc., the controlling shareholder of AHG, have already agreed to vote their AHG shares in favour of the transaction.