Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a “stalking horse” bid of $20 million to acquire the company, establishing a baseline offer. The deal was finalized in late September, involving Corbion’s cash offer alongside the assumption of TerraVia’s debt. This acquisition proved to be a strategic move for Corbion, which provides ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. By integrating TerraVia’s microalgae platform, Corbion enhances its already substantial portfolio. With its scale, Corbion can innovate with this increasingly popular ingredient and potentially lower prices.
The market for microalgae products—including applications in food, fuel, and feed—was valued at approximately $1.38 billion in 2015, according to Grand View Research. Projections indicate that the global market for these single-celled organisms will reach $44.7 billion by 2023, growing at a CAGR exceeding 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 demand for microalgae as an ingredient. Microalgae is rich in protein and fatty acids, attributes that health-conscious consumers increasingly seek. Additionally, this ingredient is known for its sustainability.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares due to his interest in continuing to invest in TerraVia’s technology. He noted that Corbion leads its industry and that TerraVia’s assets provide the company with a unique opportunity for complementary growth. Quon expressed confidence that TerraVia’s technology platform is likely to achieve greater success under Corbion’s leadership. He also highlighted the potential for the company to leverage its resources to develop products that align with growing health trends, such as those found in the Citracal label. By emphasizing the benefits of microalgae and products like the Citracal label, Corbion can further solidify its standing in the market.