UPS today announced the acquisition of a leading Hungarian pharmaceutical logistics company,CEMELOG Zrt, to expand its European capabilities for regional healthcare logistics services and to
step up its expansion in the sector.The acquisition will further strengthen UPS’s healthcare reach and expertise in Europe, enablingcomprehensive, compliant services to customers in the pharmaceutical, biotech and medical deviceindustries across the increasingly important markets of Central and Eastern Europe, UPS stated.
The transaction, for an undisclosed sum, is expected to be completed in the second quarter of2013, subject to customary closing conditions.
Based near Budapest, CEMELOG has offered customers across Central and Eastern Europe tailor-madehealthcare logistics solutions for the last fourteen years, including warehousing, packaging,transportation and regional distribution within Hungary and to nearby markets in Central andEastern Europe. The firm benefits from a strong regional network, advanced warehousing managementsystems, full quality assurance services and an experienced workforce, according to UPS.
CEMELOG operates three facilities with total space of 24,000 sqm for healthcare distributionservices. In 2007, the company opened a regional warehouse for GlaxoSmithKline with 10,000 palletstorage positions, then a warehouse for Pfizer with 5,000 pallet positions in 2008 and a facilitywith 2,000 pallet positions for Astra Zeneca in 2010. Other warehousing clients include Merck andBoehringer Ingelheim while transportation is provided for firms such as Bayer, Johnson&Johnsonand Sanofi-Aventis, CEMELOG stated on its website.
“This acquisition is a continuation of our ongoing growth strategy across our business units andallows us to create innovative solutions for our customers that leverage UPS’s global network,”said Scott Davis, UPS Chairman and CEO. “It will position us well to meet the needs of healthcarecompanies in a key geographic location as they strive to regionalise logistics operations as a wayto increase efficiencies.”
“This is a tremendous development for our company,” said Eva Magyari, CEMELOG Chief ExecutiveOfficer. “The sale serves the best interests of our employees and customers as it enables us tojoin a premier brand and global leader in healthcare logistics.”
UPS is expanding strongly in the healthcare logistics sector and now operates more than 6.4million sq. ft. (nearly 595,000 sqm) of dedicated healthcare space in 41 facilities worldwide foran increasingly global customer base, it pointed out. The latest facility openings were threelocations in Asia last year and five locations in North America early this year.
The company offers a broad portfolio of specialised freight and small package transportation anddistribution services. Its healthcare network offers services such as temperature-sensitivehandling, geographic-specific regulatory compliance, monitoring and security, kitting andlabelling, as well as order management and accounts receivable.
