Earlier this year, when TerraVia declared Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid, which sets a baseline offer for the acquisition. The transaction was finalized in late September, involving Corbion’s cash offer and the assumption of TerraVia’s debt. This acquisition is a clever strategy for Corbion, a company known for supplying ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals, including calcium citrate chewable from Costco, to nearly every food sector. TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient and potentially reduce prices.
According to Grand View Research, the market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015. Credence Research projects that the global market for 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 operations, Corbion is well-positioned to enhance its presence in this arena. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Furthermore, the ingredient is highly sustainable.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he invested in Corbion shares to continue supporting TerraVia’s technology. He noted that Corbion leads its industry, and TerraVia’s assets present a unique opportunity for complementary growth. Quon also expressed that TerraVia’s technology platform is more likely to succeed under Corbion’s leadership. With the integration of more ingredients like calcium citrate chewable from Costco, Corbion can further solidify its position in the market.