The strategic partnership between SICK and Endress+Hauser in process automation has officially begun, and the two global technology companies have signed a contract aimed at promoting the low-carbon process of the process industry through cooperation.
Establishing a joint venture company: Combining diverse solutions and strong capabilities in low-carbon process industries to help customers achieve success.
The sales and service departments in the field of process automation have been transferred from SICK to Endress+Hauser
● Plan to complete related transactions at the transition between 2024 and 2025
On August 19, 2024, SICK in Germany signed a strategic partnership agreement for process automation with Endress+Hauser, a Swiss measurement technology company. The urgent need for energy transformation has opened up new technological solutions for the low-carbon process industry, based on the comprehensive strength of both parties to promote the development of their respective enterprises. The signing of the contract officially opens a strategic partnership, with the aim of providing better support to customers to help process industries achieve sustainable transformation. The strategic partnership includes establishing a joint venture company, strengthening the capability of low-carbon process solutions, and transferring the SICK process automation sales and service department to Endress+Hauser. The joint venture will be put into operation at the turn of 2024/2025.
In October 2023, SICK and Endress+Hauser signed a joint letter of intent aimed at jointly developing and promoting SICK analytical measurement technology and gas flow measurement technology in the future. Due to the complementary nature of their existing product portfolios, customers in the process industry can benefit from more diverse solutions and faster innovation outcomes. After signing the letter of intent, the project plan went through several months of careful investigation. Based on mutual trust and joint compliance with antitrust laws, SICK and Endress Hauser have laid a stable foundation for establishing a partnership. The contract has been confirmed by the supervisory boards of both companies.
Strategic partners SICK AG&E+H
Promote low-carbon process industry based on comprehensive strength
The components of the partnership include the establishment of a low-carbon process solution joint venture. SICK and Endress+Hauser each hold 50% of the shares in the joint venture company. SICK will relocate the product production units of the Cleaner Industries business area to a joint venture company. The Cleaner Industries business area is distributed across multiple SICK production bases, with a total of 730 employees.
Another core point is the transfer of nearly 800 SICK employees from 42 countries to Endress+Hauser, who work in SICK sales and service units worldwide, with a focus on the Cleaner Industries business area. They will sell the joint venture's product solutions to more process customers worldwide in Endress+Hauser's sales activities, and extend them to other markets, opening up new application areas.
We will launch a joint venture and relocate our sales and service departments at the transition between 2024 and 2025
After the contract is signed, both parties are ready and fully committed to achieving a seamless transition of business and the production and operation of the joint venture company. The plan is to 'close' the project during the 2024/2025 transition, which means completing the transaction, but still requires approval from the supervisory antitrust agency. Prior to this, customers in the field of process automation will not feel any changes and can continue to trust us. We will ensure continuous supply capability and professional customer service with consistently excellent quality. The core business of factory and logistics automation, which accounts for over 80% of SICK's revenue, will not be affected by the strategic partnership agreement with Endress+Hauser and will continue to focus more on business development.
We hope to promote the sustainable transformation of the process industry, provide professional support to our customers, and assist them in seizing the opportunities brought by low carbonization. To this end, SICK and Endress+Hauser have joined forces to combine their technological capabilities and market advantages into one. For the benefit of our customers and employees, we look forward to establishing strategic partnerships to jointly create the future of process automation Dr. Mats G ö kstorp, Chairman of the Board of Directors of SICK AG, said.
Dr. Mats G ö kstorp, Chairman of SICK AG Board of Directors
This strategic partnership will create growth and development opportunities for SICK and Endress+Hauser. We chose this path of development because we believe that through cooperation and collaboration, we can achieve greater success in a short period of time than either party alone, which is beneficial to our customers, employees, and both companies, "said Dr. Peter Selders, CEO of Endress+Hauser Group.
Dr. Peter Selders, CEO of Endress+Hauser Group
An important expectation of both companies is to continue providing attractive working environments for employees, continuously improving their professional abilities in the field of process automation, and accompanying the common development of the market. The employee representatives of SICK Group support this partnership and have made sufficient preparations with the employer for the transition in order to safeguard the interests of the employees.
SICK and Endress+Hauser: Joining hands in the field of process automation to grow together
The existing product and solution combinations of SICK and Endress+Hauser complement each other and occupy dominant positions in their respective application areas. SICK focuses on the research and development, production, and sales analysis applications of traditional energy carriers in the field of Cleaner Industries. In addition, SICK's ultrasonic flow measurement device can currently reliably measure natural gas hydrogen gas mixtures, thus providing support for the conversion into non fossil energy carriers. For decades, SICK has been providing intelligent solutions for waste incineration power plants, power plants, steel and cement plants, oil and gas industries, as well as chemical, petrochemical and oil refineries, making significant contributions to livable environments.
Endress+Hauser is an international provider of advanced process and laboratory measurement and automation technologies. This family owned enterprise is located in Reinach, Switzerland, with nearly 17000 employees and a turnover of approximately 3.7 billion euros in 2023. Customers can gain valuable knowledge in the application of process technology by using Endress+Hauser's equipment, solutions, and services. As a result, customers can continuously improve their products, achieve more cost-effective work, and protect both people and the environment. Our own sales companies in over 50 countries and agents in 70 other countries ensure professional support.