United Parcel Service, Inc. (UPS – Free Report) announced that it has completed the acquisition of Frigo-Trans and its sister company, BPL, providers of healthcare logistics solutions across Europe. The deal was initially announced on Sept. 10, 2024. Financial terms of the deal have been kept under wraps.
Frigo-Trans’ network includes temperature-controlled warehousing, which comprises six temperature zones ranging from cryopreservation (-196°C) to ambient (+15° to +25°C); a Pan-European cold chain transportation solution and BPL’s temperature-controlled and time-critical freight forwarding capabilities.
These features of Frigo-Trans and BPL are expected to enhance UPS healthcare logistics end-to-end capabilities throughout Europe by providing temperature-controlled and time-critical logistics solutions for UPS Healthcare customers.
UPS’ EVP and president of International, Healthcare and Supply Chain Solutions, Kate Gutmann, stated, “Frigo-Trans will help deepen our portfolio of solutions for our customers and accelerate our journey to become the number one complex healthcare logistics provider in the world addressing their needs.”
Considering the fast-paced innovation in the pharmaceutical industry and the increasing demand for more integrated cold and frozen supply chains, this latest deal is likely to strengthen UPS’ competitive position in the pharmaceutical industry globally.
We would like to remind investors that strategic business moves such as acquisitions and partnerships have always been an integral policy of UPS to generate more revenues and expand geographically. These acquisitions are in line with its strategy of boosting global presence.
UPS’ Zacks Rank and Price Performance
Currently, UPS carries a Zacks Rank #3 (Hold).
Shares of UPS have declined 21.4% over the past year compared with the 12.5% loss of the industry.
Image Source: Zacks Investment Research
Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider American Airlines (AAL – Free Report) and United Airlines (UAL – Free Report) .
American Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 124.4%. Shares of AAL have gained 16.4% in the past year.
United Airlines currently carries a Zacks Rank #2 (Buy). UAL has an expected earnings growth rate of 1.3% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 26.9%. Shares of UAL have climbed 122.9% in the past year.
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