A UPS delivery driver unloads a shipment of Janssen COVID-19 vaccines and ancillary kits on March 4, 2021, in Louisville, Kentucky. UPS’ planned purchase of Andlauer Healthcare Group will advance the company’s healthcare logistics goals.

The deal will strengthen UPS’ portfolio of end-to-end cold chain services for healthcare customers, as the company will be able to leverage AHG’s facilities and specialized transportation for temperature-sensitive products, the news release said.

AHG operates 31 facilities equipped with temperature control and monitoring systems in Canada, according to its website. In the U.S., AHG provides healthcare transportation services in the contiguous 48 states through its trucking subsidiaries Skelton USA and T.F. Boyle Transportation.

UPS already has experience working with AHG, being one of the third-party logistics clients AHG highlighted in a March investor presentation. AHG founder and CEO Michael Andlauer will lead UPS Canada Healthcare and AHG following the deal’s closure.

“UPS Healthcare and AHG employees share a similar customer and patient-centric culture with a relentless focus on quality,” Andlauer said in the release. “Once the transaction is completed, the businesses will offer an even broader set of specialized logistics services to customers throughout Canada.”

Bolstering healthcare logistics capabilities is a high priority for UPS and other carriers, as the sector is seeing growing demand and generally offers better margins than home deliveries.

UPS’ healthcare revenue in 2024 totaled about $10.5 billion in 2024, CEO Carol Tomé said on a January earnings call. Through acquisitions like AHG and organic growth, UPS aims to increase its healthcare revenue to $20 billion by 2026.