UPS Buys Andlauer for $1.6B, Expanding Health Care Footprint
Acquisition Will Enhance Time- and Temperature-Sensitive Shipping Capabilities
Key Takeaways:
- UPS completed its $1.6 billion acquisition of Canada’s Andlauer Healthcare Group, expanding its presence in temperature-controlled health care logistics.
- The deal strengthens UPS’ global health care network with new facilities and expertise, following its 2025 purchase of Germany’s Frigo-Trans.
- Andlauer founder Michael Andlauer will lead UPS Canada Healthcare as the company competes with DHL and FedEx in the growing medical supply chain market.
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UPS has finalized a to buy Andlauer Healthcare Group, a Canadian supply chain company specializing in cold chain health care logistics.
The acquisition strengthens UPS’ position in health care logistics, where major carriers are racing to build infrastructure for time- and temperature-sensitive shipments. The company said the deal will allow it to deliver faster transit times, improve shipment visibility and expand its global network for pharmaceutical and medical device customers.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 3 on the TT Top 50 list of the largest global freight carriers.
UPS Healthcare, the company’s specialized division, will now integrate Andlauer’s facilities and expertise with its own 17 million square feet of compliant health care distribution space worldwide. The deal marks one of UPS’ largest health care investments since acquiring Germany’s Frigo-Trans in early 2025, part of its broader strategy to move beyond traditional parcel delivery into higher-margin, regulated logistics.
UPS said Andlauer Healthcare Group shareholders received C$55 ($40) per share in cash, valuing the transaction at about C$2.2 billion ($1.6 billion).
Kate Gutmann, executive vice president and president of International, Healthcare and Supply Chain Solutions at UPS, said the acquisition reflects the company’s commitment to precision and quality in patient care delivery.
“We are relentlessly focused on quality, improving patient outcomes and advancing health care delivery, and we are thrilled that Andlauer Healthcare Group and its talented employees share that focus,” Gutmann said.
Michael Andlauer, founder and CEO of the acquired company, will lead UPS Canada Healthcare and Andlauer Healthcare Group operations. He is expected to help expand UPS’ specialized logistics capabilities and strengthen its footprint in North America’s regulated transport sector.
The deal also links UPS with Boyle Transportation, a Massachusetts-based carrier owned by Andlauer Healthcare Group. Boyle Transportation’s former co-president, Andrew Boyle, previously served as chairman of American Trucking Associations.
The expansion comes as global competitors escalate investment in the health care sector. DHL Group announced in April that it would invest more than $1.1 billion over five years to grow its North American health care logistics network as part of a $2.3 billion worldwide initiative. FedEx, meanwhile, has prioritized health care as a key business-to-business vertical, previously forecasting about $9 billion in related revenue by the end of its 2025 fiscal year.
DHL Supply Chain ranks No. 13 on the logistics TT100 and No. 5 on the global freight TT50. FedEx ranks No. 2 on the for-hire TT100, No. 2 on the global freight TT50 and No. 43 on the logistics TT100.
Generative AI assisted in the creation of this article.
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