Process technology manufacturers SICK, the German sensor company, and Endress+Hauser, the Swiss measurement and automation technology specialist, plan to combine their process automation offerings going into 2025 and kick off a joint venture.
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, according to a media release put out by Endress, which has several U.S. manufacturing operations in the Indianapolis area, in Anaheim and Rancho Cucamonga in California and Ann Arbor, Michigan.
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SICK and Endress signed a joint memorandum of understanding for a strategic partnership last October. 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.
Endress+Hauser will take over sales and service for process analysis and gas flow measurement technology completely. Around 800 specialized sales and service employees in 42 countries will transfer from SICK to Endress+Hauser, according to the media release.
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% stake. It will employ about 730 people at several locations in Germany, according to the release.
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SICK’s products are used in waste incineration plants, power, steel, and cement plants, in the oil and gas industry, in chemical and petrochemical plants and in shipbuilding for analyzing emissions in flue gas cleaning, for example, 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,” Endress+Hauser Group CEO Peter Selders said.
