SICK and E+H join forces to create a new chapter in the field of process automation

With the urgent need for climate protection and the transition to non-fossil fuels around the world, the industry is in a state of constant change. To address this challenge, Germany sensor solutions provider SICK and Switzerland measurement solutions specialist Endress+Hauser (E+H) have announced the signing of a joint memorandum of understanding to establish a strategic partnership in the field of "clean industry". This initiative will bring innovation to the field of process automation while helping to support customers in achieving their sustainability goals.

As the global economy continues to move towards carbon neutrality, more and more companies are looking to reduce energy and resource consumption and gradually transition to non-fossil fuels and resources, which requires new technologies and solutions, especially in the field of process automation, which cannot be separated from intelligent sensors and systems to monitor and control new process technologies. Both companies see an opportunity to contribute together to a future-proof power supply, while also helping process industry customers across the value chain to achieve their sustainability goals.

In order to remain competitive in the changing market environment for process automation, SICK and E+H decided to open up new avenues for cooperation. To this end, the two companies signed a joint memorandum of understanding to establish a joint venture in the field of process automation.

According to the plan, each company will hold half of the shares of the joint venture and each will send half of the senior management. E+H will provide financial support, share its technical expertise, and expand its global sales channels. At the same time, SICK will contribute to the production of its Clean Industry business cluster, which includes several R&D and production sites throughout Germany. The global SICK sales and service department, especially in the clean industry, will be transferred to the E+H sales center. The two parties plan to conduct a comprehensive review of the relevant business areas by the end of the first quarter of 2024 and formally sign the integration and connected transaction contracts, with the closing scheduled for completion in mid-2024.

This joint venture will create synergies in the market and product portfolio, providing the industry with new solutions and increasing opportunities for success. In the field of process automation, the product and solution portfolios of SICK and E+H complement each other and lead the way in their respective fields of application.

In its clean industry business, SICK develops, manufactures, and sells analyzer applications, e.g. for emission monitoring of conventional fuels. In addition, ultrasonic flow meters from SICK already provide reliable measurements of natural gas/hydrogen mixtures, facilitating the transition to fossil fuels. With its products, solutions and services, E+H actively supports the sustainable transformation of its customers in the process industry around the world, contributing to energy and resource efficiency, energy transition and the circular economy.

This strategic partnership will provide both companies with new opportunities in process automation, including market-leading technological innovations, global customers, and a successful energy transition. Dr. Mats Gökstorp, Chairman of the Executive Board of SICK, said: "With this strategic partnership, E+H and SICK will open up new opportunities. This collaboration is driven by the gradual decarbonization of industry, which has brought about a changing market environment for process automation. By working together, we can better capitalize on these great opportunities to provide the best solutions for our customers and grow together with them. Our many years of cooperation, similar family business culture, and shared love for technology and talent are key drivers. Past successful projects with E+H show that we work well together. ”

Matthias Altendorf, CEO of E+H, said: "Our strategic partnership is mutually beneficial on multiple levels. By combining our strengths, we hope to seize the opportunities we share. Since SICK and E+H are already very successful companies in their own right, our actions are advantageous. We firmly believe that if we work together, we will achieve greater success. By working together, we can better support our customers and accompany them in their sustainable transformation of the process industry. ”

The joint efforts of SICK and E+H mark the joint response of two industry-leading companies to the challenges of climate change and sustainability. Together, they will drive the development of clean industry and sustainable energy, contribute to the future of electricity supply, and help customers achieve their sustainability goals.