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Strategic partnership

Andrea Gillhuber,

Sick and Endress+Hauser establish joint venture

Sick and Endress+Hauser have signed an agreement to jointly drive forward the decarbonization of the process industry. The companies are establishing a joint venture for this purpose.

Dr. Mats Gökstorp, CEO of Sick AG (left), and Peter Selders, CEO of the Endress+Hauser Group.

© Sick

Sick, a specialist in sensor technology, and Endress+Hauser, a manufacturer of measurement technology, have entered into a strategic partnership aimed specifically at process automation. The focus of this collaboration is the development and implementation of process solutions for decarbonization. The companies are establishing a joint venture for this purpose. Sick brings many years of expertise in emission control and the measurement of natural gas-hydrogen mixtures, while Endress+Hauser is a global market leader in process and laboratory automation. This partnership is intended to significantly advance decarbonization in the process industry and open up new market segments.

The sensor specialist will contribute the product-generating parts of its "Cleaner Industries" division to the joint venture, which comprises around 730 employees at several locations in Germany. At the same time, around 800 Sick employees from sales and service in 42 countries will transfer to Endress+Hauser to drive forward the global marketing of the new solutions. The core business of factory and logistics automation, in which Sick generates over 80 percent of its sales, will remain unaffected by the agreed merger with Endress+Hauser and should benefit from a stronger focus, according to the sensor specialist.

The start of the joint venture and the transfer of sales and service activities are planned for the turn of the year 2024/2025, subject to the approval of the relevant antitrust authorities.

The two companies had already signed a letter of intent in October 2023, which served as the basis for the partnership that has now been agreed. The complementary product portfolios of Sick and Endress+Hauser make it possible to offer a broader range of solutions and increase the speed of innovation. Following an intensive review phase, the agreement was confirmed by the supervisory bodies of both companies.

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