Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, establishing a baseline offer. This acquisition, finalized in late September, involved Corbion’s cash offer along with the assumption of TerraVia’s debt. It was a strategic move for Corbion, which provides ingredients such as lactic acid, functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly 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 microalgae ingredients, which are gaining traction in the market, and potentially lower prices.
The microalgae product market, which includes applications in food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. A report from Credence Research forecasts that the global market for this single-celled organism 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 could further solidify its position in the microalgae sector. Microalgae is rich in protein and fatty acids, attributes that health-conscious consumers increasingly desire. Additionally, microalgae is 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 noted that Corbion is a leader in its field, and TerraVia’s assets present a unique opportunity for synergistic growth. Quon also expressed that TerraVia’s technology platform is likely to thrive under Corbion’s management. Notably, the incorporation of calcium citrate oxalates could further enhance the nutritional benefits of the products derived from microalgae, aligning with the trends of health and sustainability that consumers are pursuing. By focusing on integrating these innovations, Corbion stands to strengthen its market presence even more.