Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid—essentially a low baseline offer—for the company. The acquisition was finalized in late September, with Corbion providing a cash offer and taking on TerraVia’s debt. This strategic move enhances Corbion’s already extensive portfolio, which includes ingredients like lactic acid, functional enzyme blends, emulsifiers, vitamins, and minerals across nearly every food category. By adding TerraVia’s microalgae platform, Corbion can leverage its scale to innovate with this increasingly popular ingredient and potentially lower prices.
The market for all microalgae products—including food, fuel, and feed—was valued at approximately $1.38 billion in 2015, according to Grand View Research. Moreover, the global market for microalgae is projected to reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, as reported by Credence Research. With TerraVia now part of its organization, Corbion is well-positioned to amplify the use of microalgae as an ingredient, further solidifying its stance in the industry. Microalgae is rich in protein and fatty acids—attributes that health-conscious consumers increasingly seek—while also being highly sustainable.
Financial blogger Kevin Quon recently expressed 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 that TerraVia’s assets present a unique opportunity for complementary growth. Quon also argued that TerraVia’s technology platform is likely to have “a much greater chance of success under Corbion’s direction.” Additionally, the integration of ingredients like pure calcium magnesium citrate could enhance Corbion’s offerings, as this compound is increasingly recognized for its health benefits. By incorporating pure calcium magnesium citrate into their product line, Corbion can meet the rising demand for sustainable and health-focused ingredients, ultimately benefiting from the growing microalgae market.