DHL STRENGTHENS LATIN AMERICA LIFE SCIENCE AND HEALTHCARE CAPABILITIES BY ACQUIRING CONTROL OF POLAR TRANSPORTES

Press Release: São Paulo/Bonn 04/17/2017

Transaction to boost DHL Supply Chain’s value proposition for Life Science and Healthcare industry in Brazil towards full end-to-end services and visibility

DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, is to acquire control of the Brazilian road carrier Polar Transportes, retaining the company’s management team. The transport service provider for the Life Sciences and Healthcare industry with 400 full-time employees is specialized in temperature-controlled transportation requirements and has a strong reputation in terms of technology, quality and regulatory compliance. Polar Transportes, founded in 1996, has been working as a service provider for DHL for over 15 years and runs a fleet of more than 300 trucks with national coverage. The acquisition will support DHL’s growth ambitions in a key emerging market and strengthen the Group’s end-to-end offering for the Life Sciences and Healthcare industry in Brazil. Both parties have agreed to keep the transaction value confidential. The transaction is still subject to approval from the Brazilian competition authorities.

“Acquiring control of our longstanding service provider Polar Transportes is a great opportunity for us in offering an integrated end-to-end solution for the pharma industry in Brazil. We are taking one more step to further foster our strong position in a key emerging market, that supports our Strategy 2020,” says Javier Bilbao, CEO DHL Supply Chain Latin America.

An annual survey by DHL Supply Chain among its customers shows that temperature-controlled transportation has been the top priority for three consecutive years. Additionally, as more and more newly launched products such as biologic drugs and vaccines have temperature control requirements, the cold chain segment is expected to grow at double digits.

"Becoming part of DHL Supply Chain is spectacular news for us,” says Polar Transportes CEO Agnaldo Santos. “Since our founding, we have developed new capabilities and geographies throughout two acquisitions. Becoming part of our longtime partner DHL Supply Chain is opening up new opportunities for growth and we are looking forward to merge our expertise in cold chain regulations with the resources and competencies of a global player.”

“This investment will allow us to expand our Life Sciences and Healthcare capabilities in the Brazilian Market,” adds Mauricio Barros, President DHL Supply Chain Brazil. “The temperature-controlled transport segment is one of the key elements in this industry. We strongly believe that Polar Transportes is the best player to support us in growing the business in this important area.”

Marcos Cerqueira, Life Sciences Sector Head in Brazil, says that “This strategic transaction with Polar Transportes, which also includes the Rio Lopes brand in Rio de Janeiro, reinforces our commitment to constantly improve end-to-end supply chain services for the health industry in Brazil, with emphasis on the cold chain which has gained increasing relevance in all subsectors, as pharmaceutical, medical devices, clinical trials and hospital logistics”.

Industry-specific solutions for an evolving market
With a global network of specialized pharmacists and quality managers in 160 dedicated facilities across 44 countries, DHL Supply Chain has a deep understanding of the Life Sciences and Healthcare industry. By acquiring control of Polar Transportes, DHL bolsters its already broad service offering for the sector which includes temperature-controlled warehousing, clinical trials logistics and variety of value-added services as well as consultation on regulatory and quality assurance issues. Brazil forms the biggest economy in Latin America and regardless of the overall economic decline, the national healthcare sector grew substantially in 2016, achieving 5.1 percent growth in volume and 13.2 percent growth in sales. Increased purchasing power through a bigger middle class, the demographic development and expanding investments in healthcare infrastructure have been and are expected to remain the main drivers for this development.