SICK and Endress+Hauser enter into strategic partnership for process automation
Global technology companies sign a contract to jointly advance the decarbonization of the process industry.
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German sensor solutions provider SICK and Swiss measurement solutions specialist Endress+Hauser have signed a contract for a strategic partnership in process automation. The energy transition calls for new technological solutions for the decarbonization of the process industry, something the two companies will pursue by joining their forces. The signing confirms the strategic partnership, which is intended to offer customers better support and accompany them in the sustainable transformation of the process industry. The strategic collaboration includes founding a joint venture that will strengthen and expand the process-related solutions for decarbonization, and the transfer of Sales and Service for process automation from SICK to Endress+Hauser. Provided it is approved by the antitrust authorities as planned, the joint venture will commence operations at the turn of the year 2024/2025.
In October 2023, SICK and Endress+Hauser signed a Memorandum of Understanding, stating their intent to jointly market and develop SICK’s analyzer and gas flow meter technologies. As the two companies’ product portfolios are complementary, this will allow them to offer customers in the process industry a broader range of solutions and services and higher pace of innovation. The signing of the Memorandum of Understanding was followed by a several-month-long phase in which the planned partnership was carefully assessed. In trusting cooperation and in compliance with relevant antitrust legislation, SICK and Endress+Hauser worked together to establish a stable foundation for their partnership. The contract was approved by both companies’ Supervisory Boards.
Joining forces to advance the decarbonization of the process industry
One major aspect of the partnership is the founding of a joint venture tasked with the development and production of process-related solutions for decarbonization. SICK and Endress+Hauser will each hold 50 percent of the shares in the joint venture. SICK will contribute the production units of its Cleaner Industries business, together with about 730 employees from various sites in Germany, to the joint venture.
A further key aspect is the transfer of about 800 SICK employees in 42 countries from its global Sales and Service Units with a focus on Cleaner Industries to Endress+Hauser. At the Endress+Hauser Sales Centers, they will market the joint venture’s product solutions to further customers in the process industry around the world, reach new markets, and open new fields of application.
Launch of the joint venture and transfer of Sales and Service scheduled for turn of the year 2024/2025
Now that the contract has been signed, both companies’ priority is to prepare for a seamless transition of business and the commencement of operations at the joint venture. The so-called “closing”, the conclusion of the transaction, will tentatively take place at the turn of the year 2024/2025, provided approval is granted by the responsible antitrust authorities. Until then, there will be no changes for process automation customers, who can trust in uninterrupted product availability and unchanged customer service quality. SICK’s strong core business in factory and logistics automation, which accounts for more than 80 percent of sales, will remain unaffected by the partnership with Endress+Hauser and will benefit from a stronger focus.
“Our aspiration is to drive the sustainable transformation of the process industry and to support our customers in leveraging the opportunities presented by decarbonization. That is why SICK and Endress+Hauser are combining their technological and market expertise. In the interest of our customers and employees, we look forward to the strategic partnership and to shape the future of process automation together,” says Dr. Mats Gökstorp, Chairman of the Executive Board at SICK AG.
“This strategic partnership opens up opportunities for growth and development for SICK and Endress+Hauser. We are taking this path because by collaborating and networking we can achieve more together in a reasonable amount of time than either side could on its own – all this for the benefit of our customers, employees and both companies,” says Dr. Peter Selders, CEO of the Endress+Hauser Group.
For both companies, continuing to offer employees attractive working conditions, reinforcing their expertise in the area of process automation, and expanding it together with the market are key priorities. The workers’ representation at the SICK Group supports the partnership and has, in close collaboration with the employer, prepared the planned transition with employee interests in mind.
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