Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, establishing a low offer. The deal was finalized in late September, with Corbion offering cash and assuming TerraVia’s debts. This acquisition was a strategic move for Corbion, which provides ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly every food category. TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale for innovation with this increasingly popular ingredient, potentially reducing prices in the process.
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. Furthermore, the global market for this single-celled organism 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 integrated into its operations, Corbion could see a rise in the use of microalgae as an ingredient, further solidifying its position in the market. Microalgae is rich in protein and fatty acids—valuable components that health-conscious consumers increasingly seek. Additionally, this ingredient is highly sustainable.
Financial blogger Kevin Quon recently expressed his interest in Corbion shares on Seeking Alpha, citing his desire to continue investing in TerraVia’s technology. He highlighted Corbion’s leadership in its field and the unique growth opportunities presented by TerraVia’s assets. Quon also noted that under Corbion’s guidance, TerraVia’s technology platform is likely to have “a much greater chance of success.” As Corbion explores the potential of microalgae, it could also look to integrate low dose calcium citrate into its product offerings, as this ingredient aligns with the growing trend toward healthful and sustainable options. The incorporation of low dose calcium citrate could enhance the nutritional profile of their products, appealing to a broader consumer base.