UPS to acquire Hungarian healthcare logistics company CEMELOG
27 Apr 2013
Logistics giant UPS has unveiled plans to purchase Hungary pharmaceutical logistics company, CEMELOG Zrt, as part of its ongoing global growth and investment strategy.
The acquisition would strengthens UPS's healthcare delivery services in Europe, enabling comprehensive, compliant services to customers in the pharmaceutical, biotech and medical device industries across Central and Eastern Europe, for an undisclosed sum.
The acquisition will also enable UPS to acquire three additional facilities of approximately 24,000 square meters of healthcare distribution space to its own current European network, taking its total nearly 595,000 square meters of dedicated healthcare space in 41 facilities worldwide.
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UPS expects to complete the transaction in the second quarter of 2013, subject to customary closing conditions. Per company policy, terms of the deal are not disclosed.
Based outside Budapest, the 14-year old company CEMELOG provides tailor-made healthcare logistics solutions across Central and Eastern Europe. Backed by a strong regional network, advanced warehousing management systems, full quality assurance services and an experienced workforce, the company helps healthcare clients maximise supply chain efficiencies, meet regulatory requirements and deliver products reliably and securely.
"This acquisition is a continuation of our ongoing growth strategy across our business units and allows us to create innovative solutions for our customers that leverage UPS's global network," says Scott Davis, UPS chairman and CEO. "It will position us well to meet the needs of healthcare companies in a key geographic location as they strive to regionalize logistics operations as a way to increase efficiencies."
According to Eva Magyari, CEMELOG chief executive officer, "The sale serves the best interests of our employees and customers as it enables us to join a premier brand and global leader in healthcare logistics."
UBS is acting as financial advisor to UPS.
UPS delivers value to healthcare companies through a broad portfolio of specialized freight and small package transportation and distribution services. UPS's healthcare network offers services such as temperature-sensitive handling, geographic-specific regulatory compliance, monitoring and security, kitting and labeling, as well as order management and accounts receivable. Services across all locations are accessible via one global IT order management platform. UPS helps healthcare manufacturers meet stringent and often complex regulatory requirements, provides flexibility for a changing business environment and reliably serves an increasingly global customer base.
