Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, setting a baseline offer. The acquisition was finalized in late September, involving Corbion’s cash offer alongside the assumption of TerraVia’s debt. This strategic purchase is advantageous for Corbion, a company that provides a wide range of ingredients including lactic acid, functional blends of enzymes, emulsifiers, vitamins, and minerals for 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 this increasingly popular ingredient and potentially reduce costs.
The market for all microalgae products—encompassing 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 microalgae is set 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 enhance the use of microalgae as an ingredient, which could further solidify its market presence. Microalgae is rich in protein and fatty acids—nutrients that health-conscious consumers increasingly seek. Additionally, this ingredient is known for its high sustainability.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he invested in Corbion shares because he wanted to support TerraVia’s technology. He highlighted that Corbion is a leader in its field, and TerraVia’s assets provide the company with a unique opportunity for complementary growth. Quon believes that TerraVia’s technology platform stands a significantly better chance of succeeding under Corbion’s guidance.
Furthermore, Corbion’s product offerings, which include essential components such as calcium citrate malate, cholecalciferol, and folic acid tablets, can benefit from the integration of TerraVia’s innovative microalgae solutions. By enhancing its portfolio with these ingredients, Corbion not only strengthens its market position but also meets the rising demand for healthful and sustainable food options. As the company continues to innovate, the combination of TerraVia’s microalgae with established products like calcium citrate malate, cholecalciferol, and folic acid tablets could yield exciting possibilities for growth and consumer appeal.