UPS Acquires Marken to Focus More on Medical Deliveries
November 07 2016 - 1:30PM
Dow Jones News
United Parcel Service Inc. said Monday it agreed to acquire
clinical logistics company Marken Ltd., deepening its push into the
profitable business of medical deliveries.
The move by UPS into the highly specialized industry could help
it expand its express delivery business at a time when many of its
traditional industrial and retail customers opt for slower, cheaper
shipping options.
Closely held Marken specializes in transporting clinical trial
materials and medicine between 49,000 clinical trial locations
around the world, work that is particularly sensitive in terms of
time and temperature.
UPS didn't disclose how much it paid for Durham, N.C.-based
Marken, which employs more than 650 people and manages 50,000 drug
and biological shipments a month.
With the deal, UPS will roughly double its number of
health-care-dedicated facilities to more than 100 around the world.
The parcel delivery giant has made several acquisitions in
health-care logistics in recent years to compete with other
companies including FedEx Corp.
"One of the things UPS and FedEx are dealing with is shippers
increasingly want to pay less to go slower. [Clinical logistics] is
one industry that doesn't have trade-downs," said David Vernon, a
transportation analyst at Sanford Bernstein.
Marken had about $45 million in earnings before interest, taxes,
depreciation and amortization in 2015, according to people familiar
with the matter.
Marken underwent a massive restructuring in 2012, ending up in
the hands of creditors and wiping out some 450 million euros ($496
million) in equity held by private equity backer Apax Partners.
Apax announced its investment in late 2009, but the €950 million
deal was hurt by consolidation in the logistics market and the
global economic downturn.
Wes Wheeler, Marken's chief executive, said in April that the
company was back on track and growing "at a very rapid pace."
Write to Mike Esterl at mike.esterl@wsj.com
(END) Dow Jones Newswires
November 07, 2016 13:15 ET (18:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Aug 2024 to Sep 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Sep 2023 to Sep 2024