UPS completed the acquisition of Andlauer Healthcare Group Inc. on 2025‑11‑03 for approximately CAD 2.2 billion, or USD 1.6 billion, with Andlauer shareholders receiving CAD 55.00 in cash per share.
Andlauer operates nine distribution centers and 22 branches across Canada, totaling 17 million square feet of cGMP‑ and GDP‑compliant space. Nearly 60 % of its revenue comes from temperature‑controlled ground transportation, and it provides end‑to‑end visibility, temperature‑controlled packaging, and storage for medical devices, pharmaceuticals, and clinical‑trial materials.
The transaction expands UPS Healthcare’s cold‑chain network in North America and strengthens its competitive position against firms such as FedEx and DHL. UPS has set a target to double its healthcare revenue to $20 billion by 2026 and has been investing heavily in specialized logistics capabilities.
UPS reported Q3 2025 consolidated revenues of $21.4 billion and diluted earnings per share of $1.55, with a non‑GAAP adjusted EPS of $1.74. The acquisition is expected to add revenue and margin upside over the next few years, funded through a mix of cash reserves and debt.
UPS’s “Efficiency Reimagined” initiatives, which include workforce reductions and facility closures, aim to deliver significant cost savings. The acquisition aligns with the company’s focus on higher‑margin, high‑value services and supports its broader strategy to grow in the healthcare logistics sector.
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