By Robb M. Stewart

United Parcel Service agreed to buy Canada's Andlauer Healthcare Group for roughly $1.6 billion in an effort to grow in healthcare transportation and logistics.

Under the terms of a definitive agreement between the companies, the delivery-and-logistics giant will pay 55 Canadian dollars, the equivalent of $39.62, per share in cash for Andlauer. The offer, representing a total price of about C$2.2 billion, marks a 31% premium to the Andlauer's last closing price.

Andlauer, a supply-chain management company that offers specialized temperature-controlled transportation for the healthcare industry, is set to bolster UPS's healthcare business and extend its ability to offer so-called cold-chain solutions and precision logistics, UPS said.

Andlauer is to become part of UPS Healthcare's global network, but remain headquartered in Vaughan, Ontario. Founder and Chief Executive Michael Andlauer is slated to lead UPS Canada Healthcare and Andlauer.

Kate Gutmann, UPS executive vice president and president of international, healthcare and supply chain solutions, said the addition of Andlauer would allow the company to deliver expanded capability to customers and would contribute to overall growth plans. "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," Gutmann said.

Closing of the transaction is targeted for the second half of 2025, subject to approval by Andlauer shareholders and regulatory reviews.

The deal is supported by Michael Andlauer, who is the indirect holder of about 53% of his company's outstanding shares and 82% of the votes entitled to be cast to approve the transaction. The Canadian company's board also approved the agreement with UP and recommends shareholders vote in favor of the deal.

The companies said that when the deal closes, they expect Andlauer's subordinate voting shares will be delisted from the Toronto Stock Exchange.

Andlauer said it plans to continue to declare a C$0.12 a share quarterly dividend on an ongoing basis until the closing of the transaction.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 24, 2025 08:18 ET (12:18 GMT)

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