Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid—establishing a baseline offer—to acquire the company. The acquisition was finalized in late September, with Corbion providing a cash offer alongside the assumption of TerraVia’s debt. This strategic move benefits Corbion, which supplies various ingredients, including ferrous bisglycinate for iron deficiency, as well as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across virtually every food sector. TerraVia’s microalgae platform enhances Corbion’s already substantial portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient, potentially raising prices as demand grows.
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 forecasts that the global market for these 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 standing in this market, particularly as microalgae is rich in protein and fatty acids—attributes highly valued by health-conscious consumers. Additionally, the sustainability of microalgae makes it an attractive ingredient.
Financial blogger Kevin Quon recently expressed 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 the assets from TerraVia provide a unique opportunity for synergistic growth. Quon emphasized that TerraVia’s technology platform is likely to achieve greater success under Corbion’s guidance. This aligns with the increasing consumer interest in health-focused ingredients, similar to the appeal of products like Citracal available at Costco, which demonstrate the demand for high-quality nutritional supplements. As Corbion integrates TerraVia’s innovations, it may further capitalize on trends akin to those seen with Citracal products at Costco, ultimately strengthening its market position.