Process technology: SICK and Endress+Hauser sign strategic partnership

German sensor company SICK and the Swiss measurement and automation technology specialist Endress+Hauser have agreed on a strategic partnership. Endress+Hauser will take over worldwide sales and service of SICK’s process analyzers and gas flowmeters, with a joint venture to be established for their production and further development. The aim of the partnership is to provide customers with even better support in increasing their efficiency and sustainability.

SICK and Endress+Hauser signed a joint memorandum of understanding for a strategic partnership in October 2023. Since then, the project has been examined and plans for implementing the cooperation have been drawn up. Following approval by the respective supervisory bodies, representatives of both companies have now signed a corresponding agreement. The closing of the transaction is planned for the turn of the year 2024/2025 and is subject to approval by antitrust authorities.

As a key aspect of the strategic partnership, Endress+Hauser will take over sales and service for process analysis and gas flow measurement technology. Around 800 specialized sales and service employees in 42 countries will transfer from SICK to Endress+Hauser. Customers will benefit by receiving more products from a single source. The global Endress+Hauser sales network will enable additional customers to be acquired, more industries to be reached and new applications to be developed.

From 2025, the production and further development of process analyzers and gas flowmeters will be the responsibility of a joint venture in which each partner will hold a 50 percent stake. It will employ about 730 people at several locations in Germany. The joint venture will work closely with Endress+Hauser’s competence centers to drive product innovations forward efficiently.

The two companies’ offerings in process technology complement each other perfectly. SICK’s products are currently used in particular in waste incineration plants, power, steel and cement plants, in the oil and gas industry, in chemical and petrochemical plants and in shipbuilding, for example for analyzing emissions in flue gas cleaning or for measuring the flow of natural gas and hydrogen.

“This strategic partnership opens up opportunities for growth and development for SICK and Endress+Hauser. We are taking this path because by collaborating and networking we can achieve more together in a reasonable amount of time than either side could on its own – all this for the benefit of our customers, employees and both companies,” says Dr Peter Selders, CEO of the Endress+Hauser Group.

“Our aspiration is to drive the sustainable transformation of the process industry and to support our customers in leveraging the opportunities presented by decarbonization. That is why SICK and Endress+Hauser are combining their technological and market expertise. In the interest of our customers and employees, we look forward to the strategic partnership and to shape the future of process automation together,” says Dr. Mats Gökstorp, Chairman of the Executive Board at SICK AG.

Both companies see the sustainable transformation as a business opportunity. Together, they want to provide even better support to customers in important areas such as energy and resource efficiency and climate and environmental protection as well as assisting with the decarbonization of their production processes. SICK and Endress+Hauser have worked together frequently on an order, project and customer basis. The two family-owned companies also share a long-term corporate approach.

Endress+Hauser and SICK are committed to maintaining attractive working conditions for all employees. “We look forward to welcoming the new colleagues with their valuable expertise to the Endress+Hauser team. The planned transition will be carefully prepared so that we can continue to grow together from day one,” says Peter Selders.

SICK is one of the world’s leading solution providers for sensor-based applications in the industrial sector. With 60 subsidiaries and shareholdings as well as numerous agencies, SICK maintains a presence around the globe. The company has over 12,000 employees worldwide and generated consolidated sales of 2.3 billion euros in the 2023 financial year. The core business of factory and logistics automation, which accounts for more than 80 percent of sales, will not be affected by the partnership.

Both sides are currently working with high priority to ensure a seamless transition of the business at the turn of the year. Until the closing, SICK and Endress+Hauser will continue to support their process automation customers independently.