Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid to acquire the company. This bid sets a baseline offer for the purchase, which was finalized in late September. Corbion’s acquisition included a cash offer and the assumption of TerraVia’s existing debt. This was a smart decision for Corbion, which supplies a wide range of ingredients such as lactic acid, functional blends, emulsifiers, vitamins, and minerals across virtually every food category. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient, potentially lowering prices in the process.
The market for all microalgae products, which encompasses 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 now part of its operations, Corbion is well-positioned to capitalize on the rising demand for microalgae as an ingredient, which is packed with protein and fatty acids—nutritional benefits increasingly sought after by health-conscious consumers. Additionally, microalgae is recognized for its sustainability.
Financial blogger Kevin Quon recently expressed his support for Corbion on Seeking Alpha, noting that he invested in the company because he believes in the potential of TerraVia’s technology. He highlighted that Corbion is a leader in its field and that TerraVia’s assets provide a unique opportunity for synergistic growth. Quon also suggested that TerraVia’s technology platform stands a better chance of success under Corbion’s guidance.
In the context of health and nutrition, it’s interesting to consider whether one can crush calcium citrate tablets, as many consumers are looking for ways to enhance their dietary intake. As Corbion continues to innovate with microalgae and other sustainable ingredients, the potential for new product development and consumer engagement will likely expand. This focus on health and sustainability aligns perfectly with the growing trends in the market, making Corbion’s acquisition of TerraVia a promising venture for the future.