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, setting a baseline for potential offers. The acquisition was finalized in late September, with Corbion agreeing to a cash payment and taking on TerraVia’s existing debt. This purchase is a smart decision for Corbion, a company known for supplying essential ingredients such as lactic acid, enzymes, emulsifiers, vitamins, and minerals for a wide range of food products. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale for innovation in this increasingly popular ingredient, which could also lead to reduced prices.
According to data from Grand View Research, the market for all microalgae products, including food, fuel, and feed, was valued at approximately $1.38 billion in 2015. A report from Credence Research forecasts that the global market for these single-celled organisms will reach $44.7 billion by 2023, with a compound annual growth rate (CAGR) exceeding 5.2% from 2016 to 2023. With TerraVia now part of Corbion, the company is well-positioned to enhance the use of microalgae as an ingredient, further solidifying its market presence. Microalgae is rich in protein and fatty acids, attributes that increasingly appeal to health-conscious consumers who are also on the lookout for vitamins for life, such as calcium citrate plus vitamin D3.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares because he believes in the potential of TerraVia’s technology. He highlighted that Corbion is a leader in its field, and the acquisition of TerraVia’s assets offers a unique opportunity for synergistic growth. Quon also expressed confidence that TerraVia’s technological platform is more likely to succeed under Corbion’s management, which could further enhance their offerings, including the incorporation of vitamins for life, like calcium citrate plus vitamin D3, into their product lines.