German sensor company SICK and Swiss measurement and automation technology specialist Endress+Hauser have signed a memorandum of understanding to establish a strategic partnership in the process automation sector. Their goal is to expand Endress+Hauser’s product portfolio with SICK’s process analysis and gas flow measurement engineering. The companies plan to create a joint venture to produce and further develop SICK’s process technology. This partnership will also integrate SICK’s process automation business segment into Endress+Hauser’s global sales network. The collaboration is expected to enhance their support for customers in areas like energy efficiency and environmental protection.
Two industry giants, SICK and Endress+Hauser, have joined forces with the aim of intensifying their cooperation and entering into a strategic partnership that will significantly impact the process automation business segment. This monumental move was marked by the signing of a joint memorandum of understanding.
SICK and Endress+Hauser, both renowned for their expertise in the field of industrial technology, are taking this step to strengthen their commitment to their customers by enhancing crucial areas such as energy and resource efficiency and the protection of the climate and environment.
The primary goal of this strategic partnership is to expand Endress+Hauser’s product portfolio by incorporating process analysis and gas flow measurement engineering expertise from SICK. As part of this collaboration, the two companies are planning to establish a joint venture focused on the production and further development of SICK’s cutting-edge process technology.
In addition to the technical aspect, the sales and service teams from SICK’s process automation business segment will be integrated into Endress+Hauser’s global sales network. This strategic partnership will see over 1,400 professionals from SICK’s process automation business segment, spanning 28 countries, contributing their expertise to Endress+Hauser’s already robust workforce. This united front is expected to generate an annual revenue exceeding 350 million euros.
Complementary Offerings Enhance Process Automation
The strengths of both companies are significantly complementary. SICK’s expertise in process analysis and gas flow measurement engineering has applications in various industries, such as emissions monitoring in flue gas cleaning processes, gas flow measurements, waste incineration facilities, power, steel, cement plants, the oil & gas sector, chemical and petrochemical production, and the marine industry. In the past, SICK and Endress+Hauser have collaborated on multiple orders, projects, and customer-driven solutions.
Key stakeholders, including shareholder families and supervisory bodies of both SICK and Endress+Hauser, have expressed their support for this strategic partnership. Based on the memorandum of understanding, experts from both companies are currently conducting due diligence to outline the structure and scope of the collaboration. The signing of the definitive agreement is expected to take place before the end of the first quarter of 2024, with the transaction closure targeted for mid-next year.
A Shared Vision for Success
Matthias Altendorf, CEO of the Endress+Hauser Group, articulated the broader vision of this strategic partnership: “Our strategic partnership is about mutual benefits at many levels. We want to seize shared opportunities by bundling our strengths. Because SICK and Endress+Hauser are already highly successful companies on their own, we are acting from a position of strength. We are convinced that together we will be even more successful. And by working cooperatively, we can support our customers even better and accompany them in the sustainable transformation of the process industry.”
Mats Gökstorp, Chairman of the Executive Board at SICK, highlighted the dynamic market environment for process automation, which is driven by the progressive decarbonization of the industry. He stated, “Through this strategic partnership, Endress+Hauser and SICK will break new ground. The impulse and source of momentum for this undertaking is the dynamic market environment for process automation, produced by the progressive decarbonization of industry. By working together, we can better capitalize on these excellent opportunities, while also developing the best solutions for and with our customers. Our years of collaboration in the past, similarities in the corporate cultures of our family-owned businesses, and our shared affinity for technology and people are key motivators. And successful joint projects with Endress+Hauser in the past show that we work well together.”
About SICK
SICK is a global leader in sensor-based applications for the industrial sector, with a presence in more than 50 subsidiaries, equity investments, and numerous agencies worldwide. The company boasts nearly 12,000 employees and reported a group revenue of approximately 2.2 billion euros in the 2022 fiscal year. While the core business in factory and logistics automation, which accounts for more than 80% of sales, will remain unaffected by the strategic partnership, this collaboration opens new avenues for growth and innovation in the process automation segment.
