United Parcel Service Inc said on Monday it would buy Italy-based healthcare-logistics firm Bomi Group for an undisclosed amount to bolster its capability in delivering medicines that require cold storage.
Healthcare logistics is among the areas the delivery firm has been focusing after it expanded temperature-controlled supply-chain logistics to support the deployment of COVID-19 vaccines globally.
UPS has been focusing on high-margin businesses to offset a decline in volume, as the pandemic-fueled e-commerce boom softens following easing of COVID-related measures.
Europe is the largest region outside of the United States where UPS operates, and it accounted for nearly half of the company’s international package segment revenue last year, according to filings.
The world’s biggest package delivery firm expects to add more than 350 temperature-controlled facilities, or warehouses used to store temperature-sensitive pharmaceutical products across 14 countries from the deal.
The deal will allow for faster shipping times and greater production flexibility in the delivery of next-generation pharmaceutical and biologic treatments, UPS said in a statement.