Partnerships continue to form core strategy in this maturing industrial marketplace. This partnership allows each entity to focus resources on their core businesses forming a new entity with another focus.
Perhaps more technology companies should consider splitting out pieces of the business that could be focused and innovative. Then the core business could also be more focused and innovative. We’ve seen Emerson realign its portfolio over the past few years, for example.
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 completely. 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.
SICK is one of the world’s leading solution providers for sensor-based applications in the industrial sector. The core business of factory and logistics automation, which accounts for more than 80 percent of sales, will not be affected by the partnership.
