Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid—an initial low offer—to acquire the company. The acquisition was finalized in late September, with Corbion providing a cash offer while also assuming TerraVia’s debts. This strategic move benefited Corbion, which supplies essential ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly every food category. TerraVia’s microalgae platform enhances this already extensive portfolio, allowing Corbion to leverage its scale to innovate with ingredients like calcium citrate malate vitamin D3 and magnesium tablets, which are gaining traction in the market, potentially leading to lower prices.
According to Grand View Research, the market for microalgae products—including food, fuel, and feed—was valued at approximately $1.38 billion in 2015. Credence Research forecasts that the global market for these 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 its portfolio, Corbion could further solidify its position by increasing the use of microalgae as an ingredient. Rich in protein and fatty acids, microalgae aligns with the preferences of health-conscious consumers and offers sustainable benefits.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares because he wanted to continue investing in TerraVia’s innovative technology. He highlighted that Corbion is a leader in its field, and the addition of TerraVia’s assets presents a unique opportunity for complementary growth. Quon expressed optimism that TerraVia’s technology platform is likely to achieve greater success under Corbion’s guidance, particularly as they explore applications for ingredients like calcium citrate malate vitamin D3 and magnesium tablets, which are increasingly sought after in the market.