
Andlauer Healthcare Group Reports Q1 2025 Financial Results and Announces UPS Acquisition
Andlauer Healthcare Group Inc. (TSX: AND) (“AHG” or the “Company”) has released its financial results for the first quarter ended March 31, 2025, and announced a definitive agreement to be acquired by United Parcel Service (UPS) in a significant strategic move.
Financial Highlights for Q1 2025
- Revenue: $166.1 million, a 3.1% increase from $161.1 million in Q1 2024.
- Operating Income: $21.6 million, up from $21.2 million in the same period last year.
- Net Income: $20.2 million, or $0.51 per diluted share, including a $5.0 million gain from the deconsolidation of Nova Pack. Excluding this gain, net income was $15.2 million, or $0.38 per share.
- EBITDA (excluding the Nova Pack gain): $40.0 million, compared to $39.6 million in Q1 2024.
- EBITDA Margin: 24.1%, slightly down from 24.6% in the previous year.
Segment Performance
Healthcare Logistics: Revenue increased by 8.8% to $46.6 million, driven by a 12.2% growth in logistics and distribution revenue. This growth was partially offset by a 17.5% decline in packaging revenue due to the deconsolidation of Nova Pack following its joint venture with NowPac Inc.
Specialized Transportation: Revenue rose by 1.0% to $119.5 million. Ground transportation revenue increased by 2.0%, with Canadian operations seeing an 8.7% rise (excluding fuel). However, U.S.-based truckload businesses experienced a 19.3% decline in revenue (excluding fuel). Air freight forwarding and dedicated last-mile delivery revenues grew by 4.6% and 6.0%, respectively
Strategic Joint Venture with NowPac Inc.
On March 1, 2025, AHG entered into a joint venture with NowPac Inc., combining its packaging subsidiary, Nova Pack Ltd., with NowPac. AHG contributed 50% of Nova Pack’s shares and approximately $6.1 million in cash to acquire 100% of NowPac’s shares. This strategic move aims to enhance AHG’s packaging capabilities in the healthcare sector.
UPS Acquisition Agreement
On April 24, 2025, AHG announced a definitive agreement with UPS, under which UPS will acquire AHG in an all-cash transaction valued at approximately CAD $2.2 billion (USD $1.6 billion). Shareholders will receive CAD $55.00 per share, representing a 31.1% premium over the last closing price before the announcement.(andlauerhealthcare.com)
The acquisition is expected to bolster UPS’s healthcare logistics capabilities, particularly in temperature-controlled and precision logistics solutions. AHG will become part of the UPS Healthcare global network, enhancing the end-to-end cold chain services available to customers.(American Pharmaceutical Review)
The transaction has received unanimous approval from AHG’s Board of Directors and is supported by CEO Michael Andlauer, who holds 53.2% of AHG’s outstanding shares and 82.0% of the voting rights. The acquisition is anticipated to close in the second half of 2025, pending shareholder, court, and regulatory approvals.
AHG continues to focus on strategic growth and operational efficiency. The joint venture with NowPac is expected to strengthen its packaging segment, while the pending acquisition by UPS positions the company for expanded global reach and enhanced service offerings in the healthcare logistics sector.
About AHG
AHG is a leading and growing supply chain management company offering a robust platform of customized third-party logistics (“3PL”) and specialized transportation solutions for the healthcare sector. The Company’s 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. AHG’s specialized transportation services in Canada, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients’ healthcare transportation needs. Through its complementary service offerings, available across a coast-to-coast distribution network, AHG strives to accommodate the full range of its clients’ specialized supply chain needs on an integrated and efficient basis. The Company also provides specialized ground transportation services, primarily to the healthcare sector, across the 48 contiguous U.S. states. For more information on AHG, please visit: www.andlauerhealthcare.com.