Joining forces
Whether it’s efficiency, compliance or decarbonization, companies in the process industry are facing an array of challenges. Endress+Hauser and SICK have entered into a strategic partnership in process automation to provide customers with even better support.
More than a year ago, German sensor specialist SICK and Endress+Hauser announced their intention to join forces in the field of process automation. In summer of this year, representatives of the two family-owned businesses concluded an agreement to this effect. Subject to approval of the transaction by antitrust authorities, the strategic partnership can come into effect at the turn of the year 2024/2025.
Essentially, the aim is to sell SICK’s process analysis and gas flow measurement technology exclusively via Endress+Hauser in the future. To that end, around 800 specialized sales and service employees in 43 countries are set to transfer from SICK to Endress+Hauser at the turn of the year. At the same time, production and development of devices will be taken over by a joint venture in which each partner intends to hold a 50 percent stake. It will employ over 730 people at several German locations.
2 Many customers in the process industry already use both SICK and Endress+Hauser products to increase their efficiency.
1 Process analyzers and gas flowmeters from SICK are to be distributed solely by Endress+Hauser from 2025.
Broader portfolio, broader expertise
The two companies’ process technology product portfolios complement and augment each other. SICK’s process analyzers and gas flowmeters are used primarily in waste incineration plants, power, steel and cement plants, in the oil & gas industry, in chemical and petrochemical plants, and in maritime operations, including applications such as measuring the flow of natural gas and hydrogen or measuring emissions from flue gas scrubbing.
The partnership’s aim is to provide customers in the process industry with even better support to improve efficiency and sustainability. They will benefit from a broader range of solutions and a faster pace of innovation. The two companies have already cooperated on an order, project and customer basis. In the future, the global Endress+Hauser sales network will enable the partnership to handle additional customers, reach more industries and develop new areas of application. To drive innovation and leverage synergies, the joint venture for production and development will be closely interlinked with Endress+Hauser’s competence centers.
Partners with much in common
As family-owned businesses, SICK and Endress+Hauser share a similar set of values, a people-focused corporate culture and a long-term strategic stance. Both companies see business opportunities in the process industry’s transition to sustainability. Together, they aim to support their customers in key areas such as energy and resource efficiency and help them decarbonize their production processes in the long term.
Both sides are currently working at high priority to prepare for a seamless transition of business. Until the deal is closed, SICK and Endress+Hauser will continue to support their process automation customers independently. SICK’s strong core business of factory and logistics automation will be unaffected by the merger with Endress+Hauser and will benefit from a stronger focus.
2023
OCTOBER: Memorandum of understanding is signed between SICK and Endress+Hauser on a strategic partnership in process automation.
The possibility of close cooperation is examined; a business model is designed for marketing process technology via Endress+Hauser.
2024
JULY: Following approval by their respective supervisory bodies, SICK and Endress+Hauser sign a strategic partnership agreement.
Systems and processes are readied for integration; a production and development joint venture is formed.
2025
JANUARY: The joint venture commences operations; process technology sales are handled exclusively by Endress+Hauser.
Published 17.10.2024, last updated 21.10.2024.
Dive into the world of the process industry through new exciting stories every month with our «changes» newsletter!
Subscribe to newsletter