UPS today announced its fourth healthcare logistics acquisition in Europe in the last few yearswith a deal to buy Polish firm Poltraf to strengthen its position in the healthcare supply chain
business.The Atlanta-based company said it has agreed terms with Poland-based investment fund ORTIE toacquire its pharmaceutical logistics company Poltraf Sp. z o.o. for an undisclosed sum. Thetransaction is expected to be completed in the first half of 2015, subject to customary closingconditions.
The acquisition is the first deal since UPS last month unveiled an updated five-year strategycovering expansion in key vertical markets such as healthcare as well as in international growthmarkets and B2C activities. CFO Kurt Kuehn told analysts at the event that “there might be somesmall acquisitions along the way” although growth would be primarily organic.
Explaining the Polish acquisition, UPS said this would further strengthen its healthcareexpertise and network in Europe, enabling compliant logistics services to customers forstreamlining their product supply to the fast-growing healthcare markets of Central and EasternEurope.
Based in Blonie near Warsaw, Poltraf has offered customers top-rate healthcare logisticssolutions for the past nine years. The company is recognised for its temperature-sensitivewarehousing and transportation solutions that help healthcare and life sciences companies maximisesupply chain efficiencies, meet regulatory requirements and deliver products reliably and securely.Its customers include some of the best known healthcare brands in the world, UPS said.
Poltraf makes more than 76,000 deliveries a month on average, according to information on itswebsite. The company delivered 205,300 shipments in the first quarter of 2014, a 12.6% rise, andexceeded 99% performance for on-time deliveries.
The acquisition will add three facilities with advanced warehousing management systems, fullquality assurance services, and an experienced workforce to UPS’s existing European healthcarenetwork, which now totals 14 healthcare facilities. UPS’s healthcare reach and expertise in Europeincludes dedicated healthcare distribution centers in the Benelux area, Eastern Europe, CentralEurope, Southern Europe, the Iberian Peninsula and the United Kingdom, effectively covering Europe’s most vital geographies.
Poltraf utilises a fleet of approximately 170 temperature-controlled vehicles for thetransportation of both 2-8°C refrigerated and 15-25°C products. All vehicles feature an end-to-endGPS and temperature-monitoring system, and deliveries are supported by an advanced scan-basedtracking programme. In addition, 10 field stocking locations, strategically placed across thecountry, support the timely delivery of the pharmaceuticals and medical devices.
“This acquisition brings greater capability to our global healthcare network,” said CindyMiller, president, UPS Europe. “Poltraf complements our mainland Europe expansion plan and we arenow able to provide healthcare companies access to a single source for logistics solutions acrossthe continent, helping to achieve greater supply chain efficiencies and compliance with relevantguidelines.”
“This is a very positive development for our company, our employees, and our customers,” saidPiotr Krol, CEO of Poltraf. “Joining forces with UPS will allow us to continue to providehigh-quality logistics services to our customers and broaden our reach by leveraging UPS’s globaldistribution network. We look forward to creating even greater value for our customers.”
UPS already expanded its healthcare logistics business in Europe with three acquisitions inrecent years. These were the takeover of UK-based healthcare logistics innovator, Polar Speed, inFebruary 2014; of Hungary-based pharmaceutical logistics company, CEMELOG, in 2013; and ofItaly-based Pieffe in 2011.
UPS said it offers healthcare companies a broad portfolio of specialised freight and smallpackage transportation and distribution services. Its healthcare network also offers services suchas temperature-sensitive around-the-clock monitoring and transportation capabilities,geography-specific regulatory compliance, monitoring and security, kitting and labelling, as wellas order management and accounts receivable. Services across all locations are accessible via oneglobal IT order management platform.
