Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid, which set a baseline for potential offers to acquire the company. The acquisition was finalized in late September, with Corbion offering cash and taking on TerraVia’s debt. This purchase represents a smart decision for Corbion, which provides ingredients such as lactic acid, enzyme blends, emulsifiers, vitamins, and minerals across virtually every food category. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio. The company can leverage its scale to innovate with this increasingly popular ingredient, potentially driving down prices as well.
According to data from Grand View Research, the market for microalgae products, including food, fuel, and feed, was valued at approximately $1.38 billion in 2015. A report from Credence Research projects that the global market for these single-celled organisms will reach $44.7 billion by 2023, growing at a compound annual growth rate of over 5.2% from 2016 to 2023. With TerraVia’s assets, Corbion is well-positioned to enhance its offerings, particularly with microalgae, which is rich in protein and fatty acids—attributes that health-conscious consumers increasingly seek. Additionally, these ingredients are highly sustainable.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s technology. He noted that Corbion is a leader in its field and that TerraVia’s assets provide a unique opportunity for synergistic growth. Quon also expressed confidence that TerraVia’s technology platform is more likely to succeed under Corbion’s management. Moreover, incorporating ingredients such as calcium citrate with vitamin D into their product range could further bolster Corbion’s competitive advantage in the market. As the demand for health-focused ingredients grows, the integration of microalgae and essential nutrients like calcium citrate with vitamin D could significantly enhance Corbion’s market presence.