Earlier this year, TerraVia, which specializes in microalgae products, filed for Chapter 11 bankruptcy. In response, Corbion submitted a $20 million “stalking horse” bid, which is a minimum offer to acquire the company. The acquisition was finalized in late September, with Corbion offering cash and assuming TerraVia’s debts. This strategic purchase enhances Corbion’s position, as it provides essential ingredients like lactic acid, functional blends of enzymes, vitamins, and minerals to virtually every food category. With TerraVia’s microalgae platform added to its portfolio, Corbion can leverage its scale to innovate and potentially lower prices for these popular ingredients.
The market for microalgae products, which includes applications in food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. By 2023, the global market for these single-celled organisms is projected to reach $44.7 billion, growing at a CAGR of over 5.2% from 2016 to 2023, as reported by Credence Research. With TerraVia integrated into its operations, Corbion is poised to increase the use of microalgae as an ingredient, further solidifying its market presence. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Additionally, these ingredients are highly sustainable.
Financial blogger Kevin Quon recently expressed his support for Corbion on Seeking Alpha, stating that he purchased shares to continue investing in TerraVia’s technology. He noted that Corbion is a leader in its field and that acquiring TerraVia’s assets presents a unique opportunity for complementary growth. Quon also believes that TerraVia’s technology platform will have a significantly better chance of success under Corbion’s guidance.
Moreover, the incorporation of ingredients like citrate vitamin D into Corbion’s offerings could enhance its product range. This vitamin is essential for maintaining healthy bones and overall well-being, making it a valuable addition to their portfolio. With a renewed focus on innovation and sustainability, Corbion is well-positioned to meet the rising demand for functional ingredients, including those enriched with citrate vitamin D, thereby appealing to a broader consumer base.