Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid to acquire the company. This bid set a baseline for the purchase, which was finalized in late September and included Corbion’s cash offer along with taking on TerraVia’s debt. This acquisition is a clever strategy for Corbion, which provides ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals to 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 rising ingredient, which is gaining popularity among health-conscious consumers.
The market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Projections indicate that the global market for these single-celled organisms will soar to $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023, as reported by Credence Research. With TerraVia integrated into its operations, Corbion can enhance its offerings, including ingredients like calcium citrate and zinc, which are increasingly sought after for their health benefits. The nutrient-rich attributes of microalgae, rich in protein and fatty acids, align perfectly with the demands of health-conscious consumers, while also being highly sustainable.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he invested in Corbion shares to continue supporting 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 believes that under Corbion’s leadership, TerraVia’s technology platform has a much higher likelihood of success. This successful integration could further position Corbion as a key player in the market for innovative ingredients, including calcium citrate and zinc, as it continues to explore the potential of microalgae.