German sensor manufacturer Sick and Swiss measurement and automation instrumentation specialist Endress+Hauser are looking to intensify their cooperation. The two companies are aiming for a strategic partnership in Sick's process automation sector, and have signed a joint memorandum of understanding. By joining forces, the two companies aim to support their customers even more effectively in the key areas of energy efficiency, fair use of resources, climate issues and environmental protection.
The aim of this partnership is to expand Endress+Hauser's product portfolio with Sick's gas flow measurement and analysis technologies for industrial processes. The two companies intend to create a joint venture for the production and development of Sick's process technology. Sick's process automation sales and service teams will become part of Endress+Hauser's global sales network. In total, this segment currently employs over 1,400 people in 28 countries, and generates annual sales of over €350 million.
Complementary offerings in process automation
The two companies' process offerings complement each other. Sick's process analysis and gas flow measurement technologies - for emissions monitoring in flue gas cleaning processes or gas flow measurement, for example - are used in particular in waste incineration plants, power stations, steel and cement works, in the oil and gas industry, in chemical and petrochemical production, and in the marine sector. In the past, the two companies have often collaborated on orders, projects or customers.
Both shareholder families, as well as the respective supervisory bodies of Sick and Endress+Hauser, support the strategic partnership project. Based on the Memorandum of Understanding, experts from both companies are currently carrying out due diligence to determine how the collaboration can be realized and brought to fruition. The contract is expected to be signed before the end of the first quarter of 2024, while the closing of the transaction is scheduled for the middle of next year.
Partners see shared opportunities and mutual benefits
"Our strategic partnership is synonymous with mutual benefits on many levels. We want to seize common opportunities by combining our strengths. As Sick and Endress+Hauser are already very successful companies, we are acting from a position of strength. We're convinced that together, we'll be even more successful. And by working together, we can support our customers even better, and accompany them in the sustainable transformation of the process industry".explained Matthias Altendorf, CEO of the Endress+Hauser Group.
Mats Gökstorp, Chairman of Sick's Executive Board, said: "Thanks to this strategic partnership, Endress+Hauser and Sick will be breaking new ground. The impetus and origin of this commitment are linked to the dynamism of the process automation market, generated by the gradual decarbonization of industry. By working together, we can capitalize even more effectively on these opportunities, while developing better solutions for and with our customers. Our years of collaboration, the similarities between the corporate cultures of our family companies and our shared affinity for technology and people are key motivating factors. Successful joint projects with Endress+Hauser in the past show that we work well together."