KTG Agrar SE

KTG Agrar SE was a German agricultural company headquartered in Hamburg. It was founded in 2000 as KTG Agrar GmbH by farmer Siegfried Hofreiter, his partner Beatrice Ams and his brother Werner, and converted into a stock corporation in 2005. In November 2007 it became the first German agricultural production company to be listed on the Frankfurt Stock Exchange's Entry Standard. At its peak around 2013, KTG Agrar cultivated approximately 45,000 hectares, making it one of Europe's leading producers of conventional and organically grown cash crops such as grain, maize, rapeseed and soy. The group comprised more than thirty agricultural operating companies, with land mainly in Germany (including Anklam, Quesitz, Marxdorf, Oranienburg, Podelzig, Putlitz, Wegenstedt, Nonnendorf, Linthe and Altdöbern) and, since 2005, in Lithuania (about 7,200 hectares). It also managed around 7,000 hectares in Romania from 2009. KTG Agrar's business fields included organic cash crop cultivation (about 50% of the area, where it claimed to be the German market leader by area), conventional cash crop cultivation (about 50%), bioenergy production through its listed subsidiary KTG Energie AG (biogas plants with around 30 MW connected load by mid-2012, later over 60 MW), food production (frozen products, potato specialties, convenience food and organic oils), and other activities such as acquisition and development of agricultural companies, agricultural trade and specialty crops. The company was converted into a European Company (SE) in August 2013. KTG Agrar's history was marked by rapid expansion and high debt. In 2014 and 2015, Munich Re took over several thousand hectares of its farmland. In 2015, KTG Agrar announced that Chinese conglomerate Fosun International would acquire a stake. In September 2016 the company became insolvent. The majority of the business was sold to the Zech Group and has since been continued as Deutsche Agrar Holding.

KTG Agrar's origins date to 1996/97, when farmer Siegfried Hofreiter, his partner Beatrice Ams and his brother Werner began building an organic cash crop farm. In 1999/2000 they took over the PAE Group in Putlitz. In 2000 they founded KTG Agrar GmbH, and in 2005 converted it into a stock corporation (Aktiengesellschaft) and moved its headquarters to Hamburg. According to the founder, 'KTG' is a fantasy name. Since 2005 the company also cultivated renewable raw materials. In November 2007 KTG Agrar became the first German agricultural production company to be listed on the Frankfurt Stock Exchange's Entry Standard. The IPO placed 1.8 million shares, including 1.3 million from a capital increase and up to 270,000 from the holdings of sole shareholder Beatrice Ams. About 92% of shares went to institutional investors, the rest to private investors. With 54% of shares in free float, Beatrice Ams was the largest single shareholder with 46% in 2007. Creditreform assigned a BBB rating. The securities prospectus disclosed that CEO Siegfried Hofreiter had been convicted by the Dachau District Court in September 2002 on two counts each of delaying insolvency and bankruptcy, with a professional ban lasting until September 2007; he was appointed to the KTG Agrar board on 4 October 2007. The share started at an issue price of €17.50, rose slightly, then fell to €16.50 shortly after. A Spiegel article on the first listing called it 'anything but a safe investment'. In 2007 the first biogas plants went into operation. By the end of June 2012 they reached about 30 MW connected to the grid; by 2015 total capacity rose to over 60 MW. Since 2009 KTG Agrar also managed around 7,000 hectares in Romania near Iași, taking over complete farm management for two German investors. In 2010 DZ Bank analysts expected improved revenue but also negative cash flow, and the Frankfurter Allgemeine Zeitung pointed to relatively high liabilities of €63.4 million to banks. In February 2011 subsidiary FZ Foods bought parts of the insolvent frozen food specialist Frenzel Tiefkühlkost. In June 2011 KTG Agrar took over Ölmühle Anklam GmbH & Co., which was extensively modernized and expanded for organic rapeseed oil production. On 27 June 2012 the IPO of subsidiary KTG Energie on the Frankfurt Stock Exchange was announced; KTG Energie was responsible for the entire biogas area and was the third-largest renewable energy producer in Germany. In August 2013 the shareholders' meeting resolved to convert KTG Agrar into a European Company (SE). As of 1 October 2013 a frozen food plant in Manschnow, Brandenburg, was rented from Greenyard and incorporated as BZ-Foods 1 SE; in November 2014 KTG Agrar announced its takeover. The plant had processed around 10,000 tonnes of vegetables annually, and was to concentrate the group's entire frozen vegetable production. In 2014 Munich Strategy Group named KTG the best German mid-sized company. In 2015 KTG Agrar announced that Chinese conglomerate Fosun International would acquire a stake. In 2014 and 2015 Munich Re took over several thousand hectares of KTG Agrar farmland. In September 2016 the company became insolvent. The majority of the business was sold to the Zech Group and has since been continued as Deutsche Agrar Holding.

• 2016

  Insolvency in September; majority of business sold to Zech Group and continued as Deutsche Agrar Holding.

• 2015

  Announcement that Fosun International would acquire a stake; Munich Re takes over several thousand hectares of farmland.

• 2014

  Named best German mid-sized company by Munich Strategy Group; takeover of BZ-Foods 1 SE announced.

• 2013

  Conversion into a European Company (SE); rental of a frozen food plant in Manschnow as BZ-Foods 1 SE.

• 2012

  Announcement of the IPO of subsidiary KTG Energie; biogas capacity reaches about 30 MW.

• 2011

  Acquisition of parts of Frenzel Tiefkühlkost and takeover of Ölmühle Anklam.

• 2009

  Start of managing around 7,000 hectares in Romania near Iași.

• 2007

  IPO on the Frankfurt Stock Exchange Entry Standard; first biogas plants go into operation.

• 2005

  Conversion into a stock corporation (AG) and relocation of headquarters to Hamburg; start of renewable raw material cultivation.

• 2005

  Start of production areas in Lithuania (about 7,200 hectares).

• 2000

  Founding of KTG Agrar GmbH.

• 1999

  Takeover of the PAE Group in Putlitz.

• 1996

  Siegfried Hofreiter, Beatrice Ams and Werner Hofreiter begin building an organic cash crop farm.

One of Europe's leading producers of conventional and organic cash crops, with integrated bioenergy and food production.

• Organic cash crops

  Grain, maize, rapeseed, soy and other crops grown organically on about 50% of the area.

• Conventional cash crops

  Grain, maize, rapeseed, soy and other crops grown conventionally on about 50% of the area.

• Biogas

  Produced by KTG Energie AG at nine sites with around 30 MW connected load by 2012, later over 60 MW.

• Frozen food

  Frozen products, potato specialties and convenience food based on organic raw materials.

• Organic oils

  Organic rapeseed oil produced at Ölmühle Anklam.

• CEO's prior convictions disclosed in IPO prospectus

• High debt and negative cash flow warnings

Read more

1. 1KTG Agrar SE - Wikidatawikidata.org
2. 2KTG Agrar - Wikipedia (German)de.wikipedia.org