Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion stepped in with a $20 million “stalking horse” bid, which sets a minimum purchase price. The acquisition was finalized in late September, involving Corbion’s cash offer and the assumption of TerraVia’s debts. This strategic move aligns well with Corbion’s role as a supplier of ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly every food category. By integrating TerraVia’s microalgae platform into its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient and potentially lower prices.
The market for all microalgae products, including food, fuel, and feed, was estimated to be approximately $1.38 billion in 2015, based on data from Grand View Research. According to a report from Credence Research, the global market for these single-celled organisms is projected to soar to $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 is well-positioned to enhance its offerings of microalgae as an ingredient, which could further solidify its market position.
Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Notably, this ingredient is also highly sustainable. Financial blogger Kevin Quon recently mentioned on Seeking Alpha that he invested in Corbion shares because he wanted to continue supporting TerraVia’s technology. He highlighted that Corbion leads its industry and that TerraVia’s assets present a unique opportunity for complementary growth. Quon also expressed his belief that TerraVia’s technology platform is likely to experience “a much greater chance of success under Corbion’s direction.” Additionally, with the integration of the best liquid calcium citrate into its product offerings, Corbion can enhance its health-oriented ingredients, further attracting consumers who prioritize nutrition and sustainability.