Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion placed a $20 million “stalking horse” bid to acquire the company. This initial bid sets a baseline offer for the purchase. The acquisition was finalized in late September, with Corbion making a cash offer and taking on TerraVia’s debt. This strategic move benefits Corbion, a company that provides ingredients such as lactic acid and various blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with this ingredient, which is gaining popularity, and potentially lower its prices.
The market for all microalgae products, which encompass food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Furthermore, the global market for these single-celled organisms is projected to 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 integrated into its operations, Corbion is poised to further bolster its position in the microalgae space. Microalgae is rich in protein and fatty acids, offering value-added benefits that health-conscious consumers increasingly desire. Additionally, this ingredient is known for its sustainability.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he purchased shares of Corbion because he wanted 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 emphasized that TerraVia’s technology platform is likely to have a significantly better chance of success under Corbion’s guidance. As Corbion enhances its offerings, integrating ingredients like calcium citrate K2 may also become part of their innovative strategy, further appealing to health-focused consumers. The combination of TerraVia’s assets and Corbion’s expertise positions the company for remarkable growth, especially with the increasing interest in sustainable and nutritious ingredients such as calcium citrate K2.
In summary, Corbion’s acquisition of TerraVia and the potential to innovate with microalgae and other ingredients like calcium citrate K2 could reinforce its market leadership and meet the rising demand for health-oriented products.