Earlier this year, when TerraVia initiated Chapter 11 bankruptcy proceedings, Corbion made a $20 million “stalking horse” bid—essentially setting a low baseline for offers—to acquire the company. This acquisition was finalized in late September, involving Corbion’s cash offer along with the assumption of TerraVia’s debts. This strategic move is advantageous for Corbion, a supplier of various ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient while potentially lowering prices.
According to data from Grand View Research, the market for all microalgae products—including food, fuel, and feed—was valued at approximately $1.38 billion in 2015. Furthermore, a report from Credence Research forecasts the global market for microalgae to 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 its operations, Corbion is well-positioned to further capitalize on the growing demand for microalgae as an ingredient. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers, and it also boasts a high level of sustainability.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares due to his interest in investing in TerraVia’s technology. He emphasized that Corbion leads its sector and that TerraVia’s assets present a unique opportunity for complementary growth. He also expressed confidence that TerraVia’s technology platform would have “a much greater chance of success under Corbion’s direction.” In this context, the evaluation of medication effectiveness, such as the calcium citrate formulation, can be seen as a parallel to understanding how Corbion aims to measure the success of integrating TerraVia’s innovations into its product line. By focusing on the evaluation of medication effectiveness, Corbion can enhance its offerings and meet the evolving needs of consumers, thereby solidifying its position in the market.