Dive Brief:
- DHL will acquire healthcare logistics provider Cryopdp from Cryoport, according to an announcement March 31. The deal is valued at $195 million.
- Cryopdp provides temperature-controlled transportation and delivery for life science and healthcare shipments, including cell and gene therapies, biological samples and pharmaceuticals. It handles more than 600,000 shipments annually in 135 countries.
- Cryoport expects the transaction to close in the second or third quarter of 2025 once it receives regulatory approval, according to a securities filing. Once cleared, Cryopdp will integrate into DHL's Supply Chain division, per a Cryoport investor presentation.
Dive Insight:
The purchase of Cryopdp will allow DHL Supply Chain to further build out its network to meet the needs of healthcare clients, CEO Oscar de Bok said in the announcement.
"This strategic move is also expected to yield cost savings and improve overall service levels, especially leveraging DHL Express and DHL Global Forwarding air capabilities, ultimately enhancing DHL's footprint in the high-value advanced pharma sector," the news release said.
In addition to the deal, DHL and Cryoport announced the formation of a strategic partnership to strengthen both companies' supply chain capabilities in the life science and healthcare sectors. That arrangement is also subject to regulatory approval.
For Cryoport, the partnership will give the life sciences supply chain company the opportunity to further expand its reach in markets within the Asia Pacific and Europe, Middle East and Africa regions, President and CEO Jerrell Shelton said in a call with analysts to discuss the announcement.
"We were able to get a very attractive valuation on Cryopdp, but most importantly, we were able to carve out a strategic partnership with DHL," Shelton said.
Cryoport originally acquired Cryopdp in 2020 for about $57 million, CFO and Treasurer Robert Stefanovich said during the call. The sale will aid Cryport's push to be carrier-neutral, although it will have Cryopdp as a preferred provider, Shelton said. Cryoport also uses FedEx as a logistics partner, primarily in the U.S.
The deal comes as DHL looks to grow its share of the life science and healthcare logistics space. The company's business in that area generated more than 5 billion euros ($5.4 billion) of revenue in 2024, but it faces stiff competition. FedEx is set to end its fiscal year with about $9 billion in healthcare revenue, while UPS is looking to double its business in the segment.
