UPS Acquires Andlauer Healthcare for $1.6 Billion

United Parcel Service (UPS) has agreed to acquire Canada's Andlauer Healthcare Group (AHG) for approximately $1.6 billion (USD), with AHG shareholders set to receive C$55 per share in cash. The acquisition, expected to close in the second half of the year pending shareholder and regulatory approvals, is part of UPS's broader strategy to expand its presence in higher-margin healthcare logistics amid slowing traditional package delivery. AHG specializes in temperature-controlled transportation for medical treatments, enhancing UPS Healthcare's global cold chain and precision logistics capabilities. Michael Andlauer, AHG's CEO and major shareholder, will lead the newly combined UPS Canada Healthcare operations post-acquisition and has committed to supporting the deal. UPS aims to double its healthcare segment revenue to $20 billion by 2026, reflecting its growing focus on specialized logistics solutions for the healthcare industry.