UPS’s acquisition of Bomi Group is a done deal

Atlanta-based global freight transportation and logistics services provider said this week it has officially completed its acquisition of Lombardia, Italy-based multinational healthcare logistics provider Bomi Group.

UPS initially announced its plans to acquire Bomi in August. A purchase price was not disclosed.

Established in 1985, Bomi provides high value-added services in the medtech and pharma sectors, with a customized and tailored approach, with more than 150 global multinational customers, according to UPS.

This acquisition adds significant scale to the company’s UPS Healthcare unit, with temperature-controlled facilities in 14 countries, as well as 3,000 new employees throughout Europe and Latin America.

UPS said that Bomi will change its name to Bomi, a UPS Company, adding that Bomi Group CEO Maro Ruini will join the UPS Healthcare leadership team and also transition into a new role, in which he will oversee and lead distribution operations in southern Europe and Latin America. What’s more, it also noted that bringing Bomi into the fold provides UPS Healthcare customers with access to 216 facilities comprised of more than 1.5 million square-meters of cGMP and GDP-compliant healthcare distribution space across 37 countries and territories.

UPS Executive Vice President and President of UPS International, Healthcare and Supply Chain Solutions, Kate Guttman said in a statement that the companies’ combined teams, vehicles, and advanced facilities will allow UPS Healthcare to expand its pan-European cold chain network and also said that UPS Healthcare has developed what she called a detailed transition plan to support the continued growth of its business and also connect cold chain capabilities to major European and Latin America gateways.

“With the capabilities Bomi Group brings to our network, UPS Healthcare is confident that significant new services and synergies will come from this acquisition in Europe and Latin America’, said UPS Healthcare President Wes Wheeler in a statement. “As we move into our transition plan, we will be executing with the best structure to optimize our joint capabilities. We are ready to put those synchronized services into action.”

UPS’ Wheeler told LM in August that there were various drivers behind acquiring Bomi Group, citing how innovations in biologics, specialty pharmaceuticals, and personalized medicine are driving significant demand for precision logistics to support more patient-critical, time- and temperature-sensitive products.

“We have been making investments in a range of specialized solutions that will help healthcare companies move medical products and devices globally, particularly in and out of complex regulated markets,” he said. “UPS’ acquisition of Bomi is a natural extension of its business that strengthens key areas of its healthcare portfolio and extends its global reach. The acquisition will enhance end-to-end global healthcare logistics, adding scale and expertise to UPS Healthcare’s existing operations and service, offering more support throughout Europe and Latin America. The acquisition of Bomi will play a key role in the delivery of next-generation pharmaceutical and biologic treatments that increasingly require time-critical and temperature-sensitive logistics.”

While UPS and Bomi did not have any type of previous business relationship prior to this deal, Wheeler noted that they were competitors in the healthcare logistics space. And he added that once the companies fully come together after the transaction closes that UPS Healthcare customers will benefit from a more complete, global, end-to-end set of solutions.

“We’re focused on helping our customers solve the healthcare industry’s most complex logistics challenges in four key areas, including clinical trials, pharmaceuticals, labs and testing, and medical devices,” he said. “This acquisition will enhance our end-to-end global healthcare logistics capabilities, adding scale and expertise to our operations and service offering in Europe and Latin America. This builds on multiple acquisitions and investments UPS Healthcare has made in the healthcare logistics space, and we’re excited about the way Bomi Group will broaden the portfolio of solutions we can bring to our customers.”

In terms of the competitive advantages bringing Bomi Group into the fold provides for UPS, Wheeler explained that the future of healthcare revolves around innovations in biologics, specialty pharmaceuticals, and personalized medicine.

“These products are driving billions of dollars of investment in the global healthcare industry as well as creating a huge demand for precision, temperature-controlled logistics,” he said. “In fact, more than 50% of all new drugs in the pipeline will be biologics and it’s a global market we expect to see grow from $285.5 billion in 2020 to $421.8 billion by 2025 [based on BCC Research data]. By adding Bomi Group’s expertise, its fleet of temperature-controlled vehicles and network of warehouses to our existing UPS Healthcare portfolio, we will enhance and dive further to deepen and enhance the services we can offer to our customers in this segment.”

UPS officials noted that this transaction represents its most recent initiative in expanding the company’s healthcare logistics network and services, with an eye on meeting growing demand. What’s more, it added that going back to 2020, UPS has doubled its global footprint, with some examples of recent expansions including: newly constructed and soon-to-be-opened dedicated state-of-the-art healthcare logistics facilities in Germany and Australia, as well as expanded campuses in Hungary and the Netherlands.

Earlier this month, UPS announced that its UPS Healthcare subsidiary is gearing up for an expansion in Ireland, with what it called a Dublin-based “first of its kind healthcare facility” set to open in late 2023.

UPS said that this new facility will be comprised of 6,000 square-meters (64,583 square-feet) of healthcare-dedicated space to connect Ireland’s growing pharmaceutical and medical technology industries to UPS’s smart global logistics network, serving customers in more than 220 countries and territories.