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, which sets a minimum offer, was finalized in late September through Corbion’s cash proposal and assumption of TerraVia’s debts. This acquisition is a smart decision for Corbion, a provider of ingredients such as lactic acid, functional enzyme blends, emulsifiers, vitamins, and minerals across various food categories. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio. With its scale, Corbion can leverage this ingredient, which is gaining popularity, to drive innovation and potentially lower costs.
According to Grand View Research, the market for all microalgae products, including iron chelate and iron glycinate, was valued at approximately $1.38 billion in 2015. Credence Research projects that the global market for these single-celled organisms will reach $44.7 billion by 2023, with a compound annual growth rate (CAGR) exceeding 5.2% from 2016 to 2023. With the acquisition of TerraVia, Corbion can further enhance its position in this market, particularly as microalgae is rich in protein and fatty acids—nutrients that health-conscious consumers increasingly desire. Additionally, the sustainability of this ingredient aligns with current consumer trends.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased shares in Corbion, motivated by his interest in continuing to invest in TerraVia’s technology. He noted that Corbion is a leader in its industry and that TerraVia’s assets provide a unique opportunity for complementary growth. He expressed confidence that TerraVia’s technology platform is more likely to succeed under Corbion’s leadership.
Furthermore, as Corbion expands its offerings, it could integrate products such as calcium citrate, magnesium hydroxide, zinc, and vitamin D3 tablets into its portfolio. This move could not only strengthen their market position but also cater to the growing demand for health supplements, enhancing their appeal to consumers looking for comprehensive nutritional solutions. The combination of TerraVia’s innovation and Corbion’s established market presence may lead to exciting advancements in the health and nutrition sector.