United Parcel to Buy CEMELOG - Analyst Blog


United Parcel Service Inc. ( UPS ) is planning to take over Hungary-based pharmaceutical logistics company, CEMELOG Zrt. Although the transaction is expected to be completed in the second quarter of 2013, none of the companies disclosed the financial terms.

Based near Budapest, CEMELOG has been serving clients, including some of the most renowned healthcare global brands, with custom-made healthcare logistics solutions for the last 14 years.

With this acquisition, United Parcel will gain access to a strong regional network, highly developed warehousing management systems, high-quality assurance services and efficient manpower. The company's current European base will be enhanced by three healthcare distribution facilities of approximately 255,000 square feet. United Parcel currently operates 41 dedicated healthcare units worldwide covering over 6.4 million square feet.

This acquisition forms part of United Parcel's expansion and investment program, whereby it aims to fortify its footing in Europe. The company renders wide-ranging and superior services to customers in the pharmaceutical, biotech and medical device sectors to capture large market shares in Central and Eastern Europe.

The company remains focused on developing its healthcare business to tap growth opportunities in this rapidly expanding market for package delivery service companies. Over the years, the company has established various distribution facilities specially dedicated to healthcare in key regions like Singapore, the Netherlands, Canada, Latin America, Australia and the U.S.

United Parcel is further eyeing opportunities in emerging markets like China, India, Japan and Brazil. As a result, the company extended its 8-year long partnership with pharma company Merck & Co. Inc. ( MRK ) to expand its distribution and logistics services to certain Asian and Latin American markets.

United Parcel, which operates with the likes of Air Transport Services Group Inc. ( ATSG ) and Atlas Air Worldwide Holdings Inc. ( AAWW ), retains a Zacks Rank #3 (Hold).

ATLAS AIR WORLD (AAWW): Free Stock Analysis Report

AIR TRANSPT SVC (ATSG): Free Stock Analysis Report

MERCK & CO INC (MRK): Free Stock Analysis Report

UTD PARCEL SRVC (UPS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AAWW , ATSG , MRK , UPS



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