Shipping and logistics company UPS has signed a deal to buy Andlauer Healthcare Group Inc. in a deal that values the company at about $2.2 billion.
AHG specializes in transportation and logistics for the health-care sector.
The deal is backed by AGH chief executive and Ottawa Senators owner Michael Andlauer, the indirect holder of 53.2 per cent of AHG’s outstanding shares and 82 per cent of the votes entitled to be cast to approve the transaction.
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Once the deal closes, Andlauer is expected to lead UPS Canada Healthcare and AHG.
“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, executive vice-president and president of international, health-care and supply chain solutions for UPS, said new medical treatments are driving more complexity than ever, expanding the needs of health-care customers.
“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 in a statement.
AHG operates in nine distribution centres and 22 branches across Canada. It also offers specialized health-care transportation services across the contiguous 48 U.S. states.
Under the agreement, UPS will pay $55.00 per share in cash for AHG’s multiple and subordinate voting shares. AHG’s subordinate voting shares were up $11.49 or about 27 per cent at $53.45 in trading on the Toronto Stock Exchange on Thursday.
The deal, which was unanimously approved by the AHG board, requires approval by a two-thirds majority vote by the multiple voting and subordinate voting shareholders, voting as a single class.
A special meeting of shareholders is expected to be held in June.
The sale comes as talks between the Senators and the National Capital Commission continue over a potential deal to build a new arena for the NHL club at LeBreton Flats.
The Senators reached an agreement in principle last September to purchase 10 acres of land at the NCC-owned prime development site just west of downtown.
At the time, both sides stressed that there was still work to be done before the agreement could be finalized. In his last public update on the negotiations in January, NCC chief executive Tobi Nussbaum said it could still be several months before a deal was done.
The Senators are hosting the Toronto Maple Leafs at the Canadian Tire Centre Thursday night in the team’s first home playoff game in eight years.
– With files from OBJ staff
