Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20-million “stalking horse” bid, which is a preliminary low offer, to acquire the company. The acquisition was finalized in late September, with Corbion offering cash and assuming TerraVia’s debts. This strategic move is beneficial for Corbion, which supplies various ingredients such as lactic acid, functional enzyme blends, emulsifiers, vitamins, and minerals across almost all food categories. TerraVia’s microalgae platform enhances Corbion’s extensive portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient while potentially lowering prices.
According to data from Grand View Research, the market for all microalgae products—encompassing food, fuel, and feed—was valued at approximately $1.38 billion in 2015. A report from Credence Research forecasts that the global market for 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. With TerraVia now part of Corbion, the increased use of microalgae as an ingredient could further solidify Corbion’s position in this growing market. Microalgae is rich in protein and fatty acids, which are highly sought after by health-conscious consumers, and it is also recognized for its sustainability.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s technology. He highlighted that Corbion is a leader in its field, and the acquisition of TerraVia’s assets presents a unique opportunity for complementary growth. Quon expressed confidence that TerraVia’s technology platform would have a much greater chance of success under Corbion’s leadership. Additionally, the inclusion of innovative products, such as gnc calcium citrate chews, could further enhance Corbion’s offerings and appeal to health-focused consumers. By integrating TerraVia’s capabilities, Corbion is well-positioned to capitalize on the rising demand for functional ingredients, including microalgae, and expand its product range to include items like gnc calcium citrate chews that cater to a health-conscious market.