Magnetek’s acquisition of Telemotive Industrial Controls earlier this year has prompted Hetronic to end its partnership arrangement with Magnetek’s Electromotive Systems subsidiary.
Hetronic and Telemotive both make remote control systems, and until Magnetek bought Telemotive, Hetronic used to supply Electromotive and cooperate in product development. Magnetek sales and marketing vice president Perry Pabich said at the time of the Telemotive deal that he believed the acquisition would strengthen Electromotive’s relationship with Hetronic because Magnetek would have a much stronger position in the market. The intention was to sell Telemotive and Hetronic equipment in the USA side by side.
It turns out that Hetronic took a different view of the Telemotive acquisition. Hetronic regards Telemotive as a competitor and called off its partnership relationship.
Torsten Rempe, general manager of Hetronic USA, said that the agreement was terminated on 7 February. He said that Hetronic would continue to sell its systems to Electromotive, as a customer, but it had stopped the joint R&S and information exchange.
Pabich said he felt that Hetronic had made a mistake in terminating the cooperation agreement. ‘It was their decision,’ he said.
