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Sister company

A sister company is a company with close affiliations to another company with a separate name and personnel. Both companies are owned by the same parent and are considered subsidiaries of the larger company. While some subsidiaries are not closely related and may have limited interactions with each other, others can have a close connection, and are examples of sister companies. It is possible for any number of companies to have this kind of relationship. Each sister company has its own personnel and branding. It is accountable to the parent company but can operate largely autonomously when it comes to making purchasing decisions, designing packaging and facilities, and so forth. Companies with a sister relationship to each other can run cross-promotions, encouraging customers of one to visit the sister company as well. They are usually careful to avoid operating in competition, targeting slightly different markets or operating in different regions to provide complete coverage of a given nation or state. See holding company; parent company; subsidiary.

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