Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, which sets a baseline offer. The transaction was finalized in late September, with Corbion agreeing to a cash offer and the assumption of TerraVia’s debt. This acquisition was a strategic move for Corbion, which supplies a range of ingredients, including lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals for nearly every food category. TerraVia’s microalgae platform enhances Corbion’s already extensive product lineup, allowing the company to leverage its scale to innovate with the ingredient, which is gaining popularity, and potentially reduce costs.
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 predicts that the global market for these single-celled organisms will reach $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023. With TerraVia now part of its portfolio, Corbion could see an increased use of microalgae as an ingredient, further solidifying its position in this sector. Microalgae is rich in protein and fatty acids, adding value that health-conscious consumers are increasingly seeking, especially when combined with supplements like calcium citrate plus vitamin D3.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s technology. He noted that Corbion is a leader in its field, and the assets from TerraVia provide a unique opportunity for complementary growth. Quon also expressed that TerraVia’s technology platform is more likely to succeed under Corbion’s guidance, especially as the demand for sustainable ingredients like calcium citrate plus vitamin D3 rises. Overall, the integration of TerraVia’s microalgae capabilities could greatly benefit Corbion and its commitment to innovative and sustainable ingredient solutions.