Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic $20-million “stalking horse” bid to acquire the company, establishing a baseline offer. The acquisition was finalized in late September, with Corbion offering cash and assuming TerraVia’s debts. This purchase was a clever move for Corbion, which provides ingredients such as lactic acid, functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly every food category. By integrating TerraVia’s microalgae platform into its already extensive portfolio, Corbion can innovate with this increasingly popular ingredient, potentially driving down prices and enhancing its offerings, including swisse calcium citrate.
The market for all microalgae products, covering food, fuel, and feed, was valued at approximately $1.38 billion in 2015 according to data from Grayara Research. Forecasts indicate that the global market for these single-celled organisms could 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 operations, Corbion is well-positioned to increase its use of microalgae as an ingredient, further solidifying its presence in the market. Microalgae is rich in protein and fatty acids, which are highly valued by health-conscious consumers, and the ingredient is noted for its sustainability.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he invested in Corbion shares because of his desire to continue supporting TerraVia’s technology. He noted that Corbion leads its sector and that acquiring TerraVia’s assets presents a unique opportunity for complementary growth. He also emphasized that TerraVia’s technology platform is likely to thrive under Corbion’s leadership, which may include innovations like swisse calcium citrate. Overall, the acquisition not only enhances Corbion’s capabilities but also aligns with emerging consumer trends towards sustainability and health.