Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion stepped in with a $20 million “stalking horse” bid, which sets the groundwork for a low initial offer. The acquisition was finalized in late September, involving Corbion’s cash offer along with the assumption of TerraVia’s debt. This strategic purchase enhances Corbion’s already extensive portfolio, which includes ingredients like lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals used across nearly all food categories. With TerraVia’s microalgae platform added to its offerings, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially reducing prices as well.
The market for microalgae products, which encompasses food, fuel, and feed, was valued at approximately $1.38 billion in 2015, as reported by Grand View Research. According to a report from Credence Research, the global market for these single-celled organisms is projected to rise to $44.7 billion by 2023, demonstrating a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023. With TerraVia now part of Corbion, there is a significant opportunity to boost the use of microalgae as an ingredient, which can further solidify Corbion’s position in this sector. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Additionally, it boasts a high level of 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 leads its sector and that TerraVia’s assets provide a unique opportunity for complementary growth. Quon expressed confidence that TerraVia’s technology platform is more likely to succeed under Corbion’s leadership. Furthermore, the incorporation of innovative products such as chewable calcium citrate with vitamin D could enhance Corbion’s offerings, benefiting from the growing trend of health-focused ingredients. As Corbion expands its portfolio, including the potential integration of chewable calcium citrate with vitamin D, it can further tap into the demand for nutritional products that appeal to consumers seeking health benefits.