UPS announces plans to acquire Bomi Group, to further expand healthcare logistics presence

Atlanta-based global freight transportation and logistics services provider UPS rolled out its plans yesterday to acquire Lombardia, Italy-based multinational healthcare logistics provider Bomi Group.

UPS did not disclose a purchase price for the transaction, but it did state that it is expected to be completed by the end of 2022 and is subject to customary regulatory review and approval.

Established in 1985, Bomi provides high value-added services in the medtech and pharma sectors, with a customized and tailored approach, with more than 150 global multinational customers, according to UPS.

Once the transaction becomes official, UPS said it will bring more than 350 temperature-controlled vehicles and 4 million square-feet to the UPS Healthcare global footprint, while also providing customers with faster shipping times, and increased production flexibility, as well as offerings to help attract new business. And it added that Bomi will significantly help UPS in delivering next-generation pharmaceutical and biologic treatments requiring time-critical and temperature-sensitive logistics services.

“We are focused on building healthcare logistics capabilities and services that allow our customers to deliver the newest healthcare innovations,” said UPS Healthcare President Wes Wheeler in a statement. “We are excited to combine Bomi’s talent, expertise and capabilities with UPS Healthcare—together, we will provide unmatched solutions to our customers, powered by UPS’s integrated, global smart logistics network.”

And UPS said that Bomi Group CEO Marco Ruini, will continue and other key company leaders will continue in their roles to provide seamless service to Bomi Group customers upon completion of the transaction, Bomi Group’s employees also continuing to play vital roles in the combined organization.

“With over 35 years in the healthcare logistics industry, our team has developed best-in-class services designed to meet and exceed the needs of our medical technology and pharmaceutical customers,” said Ruini in the same statement. “Joining the UPS team will expand those capabilities and create an even more integrated and powerful global network for our customers.” 

UPS’ Wheeler told LM that there were various drivers behind acquiring Bomi Group, citing how innovations in biologics, specialty pharmaceuticals, and personalized medicine are driving significant demand for precision logistics to support more patient-critical, time- and temperature-sensitive products.  

“We have been making investments in a range of specialized solutions that will help healthcare companies move medical products and devices globally, particularly in and out of complex regulated markets,” he said. “UPS’ acquisition of Bomi is a natural extension of its business that strengthens key areas of its healthcare portfolio and extends its global reach. The acquisition will enhance end-to-end global healthcare logistics, adding scale and expertise to UPS Healthcare’s existing operations and service, offering more support throughout Europe and Latin America. The acquisition of Bomi will play a key role in the delivery of next-generation pharmaceutical and biologic treatments that increasingly require time-critical and temperature-sensitive logistics.”

While UPS and Bomi did not have any type of previous business relationship prior to this deal, Wheeler noted that they were competitors in the healthcare logistics space. And he added that once the companies fully come together after the transaction closes that UPS Healthcare customers will benefit from a more complete, global, end-to-end set of solutions.

“We’re focused on helping our customers solve the healthcare industry’s most complex logistics challenges in four key areas, including clinical trials, pharmaceuticals, labs and testing, and medical devices,” he said. “This acquisition will enhance our end-to-end global healthcare logistics capabilities, adding scale and expertise to our operations and service offering in Europe and Latin America. Bomi Group will add more than 350 temperature-controlled vehicles and four million square feet (391k m2) to UPS Healthcare’s global footprint, giving customers access to faster shipping times, greater production flexibility, and a platform to attract new business in traditional and new markets. This builds on multiple acquisitions and investments UPS Healthcare has made in the healthcare logistics space, and we’re excited about the way Bomi Group will broaden the portfolio of solutions we can bring to our customers.”

In terms of the competitive advantages bringing Bomi Group into the fold provides for UPS, Wheeler explained that the future of healthcare revolves around innovations in biologics, specialty pharmaceuticals, and personalized medicine.

“These products are driving billions of dollars of investment in the global healthcare industry as well as creating a huge demand for precision, temperature-controlled logistics,” he said. “In fact, more than 50% of all new drugs in the pipeline will be biologics and it’s a global market we expect to see grow from $285.5 billion in 2020 to $421.8 billion by 2025 [based on BCC Research data]. By adding Bomi Group’s expertise, its fleet of temperature-controlled vehicles and network of warehouses to our existing UPS Healthcare portfolio, we will enhance and dive further to deepen and enhance the services we can offer to our customers in this segment.”

UPS officials noted that this transaction represents its most recent initiative in expanding the company’s healthcare logistics network and services, with an eye on meeting growing demand. What’s more, it added that going back to 2020, UPS has doubled its global footprint, with some examples of recent expansions including: newly constructed and soon-to-be-opened dedicated state-of-the-art healthcare logistics facilities in Germany and Australia, as well as expanded campuses in Hungary and the Netherlands.

And last month, UPS announced key expansion initiatives for its UPS Premier Service portfolio, which is comprised of what the company describes as three-level flexibility to meet the unique needs of its healthcare shipper customers.

The company added that UPS Premier monitors packages at all times, creating visibility and prioritization for each shipment. And it added that sensor technology enables real-time recovery of UPS Premier shipments if they encounter network delays, temperature deviations, or other issues. It said that UPS Premier Silver and Gold are now available in major global markets, and UPS Premier Platinum, which will be made available in the fall, enables shippers with the ability to monitor temperature, light, and humidity while tracking shipments coming into and out of the UPS network. UPS Premier connects major global trade lanes, while also expanding geographically, in turn, providing customers with various benefits, including: efficient customs brokerage; environmental monitoring; and visibility.

Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of Ben Gordon Strategic Advisors, told LM that the UPS acquisition of Bomi showcases the fact that UPS is expanding globally, particularly in the pharmaceutical logistics arena.

“We have seen both UPS and FedEx pursuing targeted acquisitions in this arena,” he said. “It makes sense, because both are looking to expand the scope of services they can provide for health care companies. We've seen them acquire pharmaceutical shippers like Marken. Warehousing is a next step.”