United Parcel Service agreed to buy Canada’s Andlauer Healthcare Group for roughly $1.6 billion in an effort to grow in healthcare transportation and logistics.

(Reuters) -Parcel giant UPS said on Thursday it would buy Canada's Andlauer Healthcare Group for $1.6 billion, boosting its healthcare logistics business. AHG operates nine distribution centers and 22 branches across Canada,

UPS has been reorienting around higher-margin business lines, including healthcare, to offset softness in the traditional package delivery coming out of the pandemic-driven e-commerce boom. The company aims for $20 billion in revenue in the health segment by 2026, double the total from 2023.