United Parcel Service Inc.
) 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.
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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
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.
) 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.
Atlas Air Worldwide Holdings Inc.
), retains a Zacks Rank #3 (Hold).