Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid, which serves as a baseline offer, to acquire the company. The acquisition was finalized in late September, with Corbion agreeing to pay in cash and take on TerraVia’s debt. This strategic move is advantageous for Corbion, a supplier of various ingredients, including lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals, catering to nearly every sector of the food industry. By integrating TerraVia’s microalgae platform into its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially lowering prices in the process.
The market for all microalgae products, which encompasses food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Furthermore, a report from Credence Research predicts that the global market for these single-celled organisms will reach $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023. With TerraVia as part of its operations, Corbion stands to enhance its involvement in the microalgae sector, which is rich in protein and fatty acids—nutritional benefits increasingly favored by health-conscious consumers. Additionally, microalgae is recognized for its sustainability.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s technology. He noted that Corbion is a leader in its industry, and TerraVia’s assets provide the company with a unique opportunity for complementary growth. He also believes that TerraVia’s technology platform is more likely to succeed under Corbion’s leadership. Notably, as health-conscious consumers increasingly seek out products like Solgar calcium vitamin D, the potential for microalgae to serve as a valuable ingredient aligns perfectly with market trends. The integration of TerraVia’s resources could further solidify Corbion’s position in this dynamic space, enhancing their offerings of not just microalgae but also essential nutrients like Solgar calcium vitamin D. As the demand for healthy and sustainable ingredients rises, Corbion’s strategic acquisition may prove to be a game-changer for the company’s future growth.