Pepperl+Fuchs acquires the proximity sensor business of Siemens

‘Why did Siemens sell its proximity business?’ Control Engineering asks

After learning of the agreement Control Engineering asked Siemens and Pepperl+Fuch for more information about the transactions. Siemen’s response follows, added to this article on March 8.

-Why did Siemens sell this business?
As part of the ongoing review of our portfolio, Siemens has decided to sell its Simatic PX production sensor business to Pepperl+Fuchs. The sale of the PX business reflects the decision by Siemens AG to withdraw strategically from the production sensor business, specifically proximity switches. Siemens’ goal was to find a buyer who could offer better development opportunities outside Siemens for the Simatic PX proximity switches. Pepperl+Fuchs is just such a company. They are the worldwide leading manufacturer of electronic sensors and components for intrinsically-safe explosion protection.
-For customers asking Siemens for proximity sensors after mid-year, what will be the reply?
To guarantee continuity of supply of proximity switches, Siemens is asking its customer to please continue placing orders with existing contacts. The seamless transfer of the PX business to Pepperl+Fuchs is planned for the second quarter of this calendar year. In the interim, customers will continue to be served by Siemens sales channels as normal. There will be an announcement informing customers when Pepperl+Fuchs will take over as their supplier of proximity switches. After the contracts are signed (Q2 2010) there will be a transitional period of several months, during which the business will be transferred to the new owner. This involves establishing the IT infrastructure required by the new buyer and preparing premises where necessary. On the closing date, all business data, contracts, customer relationships, inventories and supplies, along with machinery and other equipment, will pass to Pepperl+Fuchs. At that time, Pepperl+Fuchs will take full responsibility for the PX business and will assume all rights and obligations.
-Are there any other business units or product lines for sale?
Siemens doesn’t have any announcements to make at this time.
-Would Siemens consider an offer for any other business units or product lines if the price were right?
Siemens is constantly evaluating its portfolio to determine if its product lines and businesses are in line with company strategy. However, Siemens doesn’t have any announcements to make at this time.

P+F: More about people, timeline, and assets in the proximity sensor purchase

Dr. Gunther Kegel, CEO of Pepperl+Fuchs GmbH, P+F tells Control Engineering more about the people, timeline, and assets of the transaction. This information was added to this article on March 9.

-Does the transaction include people, facilities, manufacturing capabilities or other assets?
The structure of the transaction is an asset deal. As such major machine assets, tools, IP, customer base, product design and manufacturing know how will be transferred as well as a limited number of people from R+D and manufacturing.

Does the transaction include all the sonar, optical, inductive, and capacitive lines, and associated accessories listed here ?
YES, exactly.

-Do the products duplicate any existing Pepperl+Fuchs products? If so, would any of the Siemens or Pepperl+Fuchs sensors be phased out or discontinued?
The entire program of Siemens proximity sensors will completely incorporated into the P+F offering. At a later stage R+D projects will be launched to develop next generation products in order to migrate the existing lines into each other. This timeline allows the existing customers to continue to order products under the same order code. As such a smooth transition and continuous delivery capability will be assured.

Will you disclose the purchase price?
Both parties have agreed not to disclose purchase price.