SICK and Endress+Hauser want to join forces in process automation

Prozessmesstechnik spielt eine zentrale Rolle bei Energie- und Ressourceneffizienz sowie Klima- und Umweltschutz. © Endress+Hauser / Process instrumentation plays a pivotal role in energy and resource efficiency, as well as in protecting the climate and environment. © Endress+Hauser

Matthias Altendorf, CEO der Endress+Hauser Gruppe mit Sitz im schweizerischen Reinach bei Basel. © Endress+Hauser / Matthias Altendorf, CEO of the Endress+Hauser Group with headquarters in Reinach, Switzerland. © Endress+Hauser

Dr. Mats Gökstorp, Vorstandsvorsitzender der SICK AG mit Sitz im südbadischen Waldkirch bei Freiburg. © SICK AG / Dr Mats Gökstorp, chairman of the executive board at SICK AG with headquarters in Waldkirch, Germany. © SICK AG

German sensor company SICK and Swiss measurement and automation technology specialist Endress+Hauser want to intensify their cooperation. Both companies are aiming for a strategic partnership for SICK’s process automation business segment and have signed a joint memorandum of understanding. By bundling their strengths, the companies are striving to provide even better support for their customers in important areas such as energy and resource efficiency and protection of the climate and environment.

The goal of the partnership is to expand the Endress+Hauser product portfolio with process analysis and gas flow measurement engineering from SICK. The two companies intend to establish a joint venture for the production and further development of SICK process technology. The sales and service teams of SICK’s process automation business segment will become part of Endress+Hauser’s global sales network. In total, this segment currently employs more than 1,400 people in 28 countries and generates more than 350 million euros in sales annually.

Complementary offerings in process automation

The process technology offerings from both companies complement each other. The process analysis and gas flow measurement engineering from SICK – for emissions monitoring in flue gas cleaning processes or for gas flow measurements, for example – are employed particularly in waste incineration facilities, at power, steel and cement plants, in the oil & gas industry, in chemical and petrochemical production and in the marine sector. In the past, the companies have frequently worked together on an order, project and customer basis.

Both shareholder families, as well as the respective supervisory bodies of SICK and Endress+Hauser, are backing the planned strategic partnership. Using the memorandum of understanding as a foundation, experts from both companies are now conducting due diligence to determine how the collaboration can be accomplished and brought to fruition. The contract is expected to be signed before the end of the first quarter of 2024, while closing of the transaction is scheduled for the middle of next year.

Partners see shared opportunities and mutual benefits

“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,” explained Matthias Altendorf, CEO of the Endress+Hauser Group.

Dr Mats Gökstorp, chairman of the Executive Board at SICK, said: “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.”

SICK is one of the world’s leading solutions providers for sensor-based applications in the industrial sector. With more than 50 subsidiaries and equity investments as well as numerous agencies, SICK maintains a presence around the globe. SICK has almost 12,000 employees worldwide and generated a group revenue of around 2.2 billion euros in the 2022 fiscal year. The core business in factory and logistics automation, which accounts for more than 80 percent of sales, will remain unaffected by the strategic partnership.