UPS purchases Hungarian logistics firm CEMELOG
UPS today announced it will purchase the Hungarian pharmaceutical logistics company, CEMELOG Zrt, as part of an ongoing global growth and investment strategy.
Designed to strengthen UPS's healthcare reach and expertise in Europe, the acquisition aims to offer comprehensive, compliant services to customers in the pharmaceutical, biotech and medical device industries across the ‘increasingly important’ markets of Central and Eastern Europe.
Based outside of Budapest, CEMELOG has offered customers across Central and Eastern Europe tailor-made healthcare logistics solutions for the last fourteen years. Backed by a strong regional network, advanced warehousing management systems, full quality assurance services and an experienced workforce, the company helps healthcare clients maximize supply chain efficiencies, meet regulatory requirements and deliver products reliably and securely. CEMELOG's customers include some of the most recognized healthcare brands in the world.
UPS expects to complete the transaction in the second quarter of 2013, subject to customary closing conditions. Per company policy, terms of the deal are not disclosed.
"This acquisition is a continuation of our ongoing growth strategy across our business units and allows us to create innovative solutions for our customers that leverage UPS's global network," said Scott Davis, UPS Chairman and CEO. "It will position us well to meet the needs of healthcare companies in a key geographic location as they strive to regionalize logistics operations as a way to increase efficiencies."
"This is a tremendous development for our company," said Eva Magyari, CEMELOG Chief Executive Officer. "The sale serves the best interests of our employees and customers as it enables us to join a premier brand and global leader in healthcare logistics."
The acquisition adds three additional facilities of approximately 255,000 square feet (24,000 square meters) of healthcare distribution space to UPS's current European network. The announcement follows the opening of three new dedicated healthcare facilities across Asia in October 2012 and the expansion of five facilities across North America in early 2013. UPS now operates more than 6.4 million sq. ft. (nearly 595,000 square meters) of dedicated healthcare space in 41 facilities worldwide.