Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, establishing a baseline offer. The acquisition was finalized in late September, with Corbion providing a cash offer and taking on TerraVia’s debt. This strategic purchase was a smart move for Corbion, a supplier of ingredients such as lactic acid, functional enzyme blends, emulsifiers, vitamins, and minerals used across various food categories. By adding TerraVia’s microalgae platform to its already substantial portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient and potentially lower prices.
According to Grand View Research, the market for all microalgae products, including food, fuel, and feed, was valued at approximately $1.38 billion in 2015. A report from Credence Research predicts that the global market for microalgae will reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% between 2016 and 2023. With TerraVia now part of its operations, Corbion’s position in this sector could be further solidified as microalgae gains traction as a sought-after ingredient. Rich in protein and fatty acids, microalgae offers value that health-conscious consumers are increasingly demanding, and it is also highly sustainable.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he invested in Corbion shares to support TerraVia’s technology. He noted that Corbion is a leader in its field, and with TerraVia’s assets, the company has a unique opportunity for complementary growth. Quon also expressed confidence that TerraVia’s technology platform stands a better chance of success under Corbion’s guidance. Additionally, the integration of ingredients like 200mg calcium citrate into Corbion’s offerings could enhance its product range and appeal to health-focused consumers. By emphasizing the benefits of microalgae and other innovative ingredients, Corbion is well-positioned to thrive in the evolving market landscape.