Following a September announcement, in which it stated it agreed to acquire Germany-based healthcare logistics services provider Frigo-Trans and its sister company, BPL, Atlanta-based global freight transportation and logistics services provider UPS said today the acquisitions are now completed.
The value and terms of the transactions were not disclosed.
“The acquisitions further enhance the end-to-end capabilities available to UPS Healthcare customers, who increasingly need temperature-controlled and time-critical logistics solutions globally,” said UPS. “Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. This combined with the logistics solutions brought by BPL’s time-critical freight forwarding capabilities further enhances UPS Healthcare solutions for customers in Europe.”
When UPS first made this announcement in September, it said a key driver of these acquisitions was to expand its European healthcare portfolio. And it added that upon the completion of this deal, bringing Frigo-Trans and BPL into the fold will boost the company’s end-to-end capabilities throughout Europe for UPS Healthcare customers who increasingly require temperature-sensitive and time-critical logistics.
“The fast-paced innovation in the pharmaceutical industry is creating the need to have more integrated cold and frozen supply chains,” said UPS EVP and President of International, Healthcare and Supply Chain Solutions Kate Gutmann, in a September statement. “Frigo-Trans will help deepen our portfolio of solutions for our customers and accelerate our journey to become the number one complex healthcare logistics provider in the world addressing their needs.”
Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of Ben Gordon Strategic Advisors (BGSA), previously told LM that these deals are another example of UPS continuing to build on its focus on healthcare.
“[In 2023] they acquired MNX. The prior year they bought Bomi Group. In 2016 they purchased Marken. And…they are buying Frigo-Trans and BPL,” he said. “UPS has stated their intent to grow healthcare logistics from $10 billion in 2023 to $20 billion in 2026. They are onto something. The global healthcare logistics market is $130 billion. And cold chain services can be used for a broader range of temperature-controlled markets. This is a high-margin niche in the supply chain arena, and it gives UPS the opportunity to create a competitive edge.”
A recent Bloomberg article noted that UPS Healthcare was a $10 billion business at the end of 2023, representing roughly one-tenth of the company’s total revenue. The article added that UPS wants to double that number by 2026 with, driven in part by acquisitions and new business ventures.
