Global shipping giant UPS has agreed to acquire Andlauer Healthcare Group (AHG) in a deal that values the Canadian company at approximately $2.2 billion.

The acquisition will significantly strengthening UPS’s footprint in the healthcare logistics sector, said the Atlanta-based company.

AHG, which specializes in transportation and logistics services for the healthcare industry, operates in nine distribution centres and 22 branches across Canada, and also provides specialized healthcare transportation services across the contiguous U.S.

The acquisition has the backing of AHG founder and CEO Michael Andlauer, who indirectly holds 53.2% of the company’s outstanding shares and controls 82% of the votes required to approve the deal.

Following the close of the transaction, Andlauer—also known for his role as owner of the NHL’s Ottawa Senators—is expected to lead UPS Canada Healthcare and AHG, according to the Canadian Press.

“I look forward to working with UPS to leverage its logistics capabilities to enhance AHG’s specialized transportation and health-care logistics services to our clients,” Andlauer said in a statement.

Kate Gutmann, UPS executive vice-president and president of international, healthcare and supply chain solutions, said the acquisition comes at a time when the healthcare sector is evolving rapidly.

“Andlauer Healthcare Group will help us deliver expanded capability to our customers, driving best-in-class patient outcomes while contributing to our overall growth plans across the business,” Gutmann said.

UPS will pay $55.00 in cash per share for AHG’s multiple and subordinate voting shares. On Thursday, AHG’s subordinate voting shares surged $11.49—or about 27%—to close at $53.45 on the Toronto Stock Exchange.

The transaction has been unanimously approved by AHG’s board of directors. It still requires the support of two-thirds of AHG shareholders—both multiple and subordinate voting—voting as a single class. A special meeting of shareholders is scheduled for June.

Photo: Andlauer Healthcare Group

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