Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic move by submitting a $20 million “stalking horse” bid, which sets a low benchmark for potential offers, to acquire the company. The acquisition was finalized in late September, with Corbion providing a cash offer and assuming TerraVia’s debts. This purchase is a clever strategy for Corbion, a supplier of various food ingredients, including lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals, which are used across nearly all food categories. By integrating TerraVia’s microalgae platform into its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially reducing prices in the process.
The market for all microalgae products, spanning 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 reach $44.7 billion by 2023, reflecting 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 operations, Corbion’s enhanced focus on microalgae could significantly bolster its position in this sector. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Additionally, the sustainability of this ingredient aligns well with growing environmental concerns.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares because he wanted to continue investing in TerraVia’s technology. He noted that Corbion leads its field and that TerraVia’s assets offer a unique opportunity for complementary growth. Quon also expressed his belief that TerraVia’s technology platform has a higher likelihood of success under Corbion’s leadership. Furthermore, as consumer interest in health-oriented products rises, the incorporation of ingredients like calcium citrate tablets 500mg, known for their various uses, may enhance Corbion’s product offerings. The potential integration of microalgae with established products, such as calcium citrate tablets 500mg, could help meet the evolving demands of health-conscious consumers, thus strengthening Corbion’s market presence.