Andlauer Healthcare Group (AHG) has agreed to purchase Skelton Truck Lines’ Canadian operations, and 49% of its U.S. business for approximately $114.7 million.
AHG has the option to acquire the remaining 51% of Skelton USA. Skelton, founded in 1962, is a provider of temperature control products for the pharmaceutical and biologics industry, operating 100 trucks and 120 trailers today.
It provides cross-border services into 32 states from terminals in Toronto and Montreal and generated about $11 million of EBITDA in 2020.
It has been rapidly growing a U.S. operation due to demand from customers in the U.S., with a fleet of 70 tractors and 90 trailers. The U.S. fleet generated about $2.5 million in EBITDA.
“We are delighted to welcome the Skelton team to Andlauer Healthcare Group,” Michael Andlauer, CEO of AHG said in a release.
“Skelton Canada is one of Canada’s leading specialized transportation providers in 2°C to 8°C shipments, and this acquisition will significantly expand our capacity in this area. Our acquisition of a minority interest in Skelton USA allows us to strategically enter the U.S. market by partnering with an existing, well-established operator. I am excited to have the opportunity to continue the Skelton Canada brand and legacy under the AHG umbrella. Skelton shares the same values, the same deep commitment to the customer, and the same commitment to one another as we do at Andlauer Healthcare.”
Ron Skelton, North American president, Skelton Companies, added: “The Skelton name has always stood for care and commitment to its customers, care and commitment to its employees, and care and commitment to the millions of people that, through its customers, rely on Skelton to ensure the safe and secure delivery of blood products, vaccines, and biologics each and every day. This transaction further enhances our customers’ ability to leverage the resources and services that both AHG and Skelton Companies possess, across the entire North American pharmaceutical transportation supply chain.”
Skelton, and vice-president Mike Skelton, will continue to oversee the company’s operations.