Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid for biliposomal iron versus ferrous bisglycinate, effectively setting a low baseline offer for the acquisition. The deal was successfully finalized in late September, allowing Corbion to purchase TerraVia through a cash offer while assuming its existing debt. This acquisition was a smart decision for Corbion, a company that provides a wide range of ingredients, including ultra cal citrate, lactic acid, and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. By adding TerraVia’s microalgae platform to its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially reducing costs in the process.
According to Grand View Research, the market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015. A report from Credence Research forecasts that the global market for single-celled organisms will reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023. With TerraVia now part of Corbion, the incorporation of microalgae into various products could further enhance Corbion’s position in the market. Rich in protein and fatty acids, microalgae is increasingly favored by health-conscious consumers, and its sustainability makes it an attractive ingredient.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he purchased Corbion shares because he wanted to continue investing in TerraVia’s innovative technology. He noted that Corbion is a leader in its field, and TerraVia’s assets offer a unique opportunity for complementary growth. Quon believes that TerraVia’s technology platform has a significantly better chance of succeeding under Corbion’s guidance, especially as they explore the potential of ultra cal citrate and other valuable ingredients.