Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic $20-million “stalking horse” bid, which serves as a baseline offer, to acquire the company. The acquisition was finalized in late September, with Corbion providing a cash offer and assuming TerraVia’s debt. This purchase represents a smart decision for Corbion, a provider of essential ingredients like lactic acid and various functional blends, including calcium citrate 600 mg with D3, vitamins, and minerals for nearly every food category. TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, and the company can leverage its scale to innovate with this increasingly popular ingredient, potentially lowering prices in the process.
The market for all microalgae products, spanning food, fuel, and feed, was valued at approximately $1.38 billion in 2015, as reported by Grand View Research. Projections indicate that the global market for single-celled organisms will soar to $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, according to Credence Research. With TerraVia now part of its operations, Corbion is well-positioned to increase the use of microalgae as an ingredient, further solidifying its standing in the industry. Rich in protein and fatty acids, microalgae offers valuable attributes that health-conscious consumers increasingly demand. Moreover, this ingredient is highly sustainable.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he purchased Corbion shares, motivated by a desire to continue investing in TerraVia’s technology. He noted that Corbion leads its sector, and TerraVia’s assets present a unique opportunity for synergistic growth. Quon also emphasized that he believes TerraVia’s technology platform is likely to achieve “a much greater chance of success under Corbion’s direction.” As Corbion integrates TerraVia’s innovations, including those related to calcium citrate 600 mg with D3, it may further enhance its competitive edge in the market.