Earlier this year, when TerraVia declared Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, setting a low benchmark for other offers. The acquisition was finalized in late September, with Corbion offering cash and assuming TerraVia’s debt. This strategic move benefits Corbion, which supplies a range of ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. By adding TerraVia’s microalgae platform to its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient while potentially lowering costs.
The market for microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Credence Research forecasts that the global market for this single-celled organism will reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% between 2016 and 2023. With TerraVia now part of its operations, Corbion is well-positioned to enhance the use of microalgae as an ingredient, which is rich in protein and fatty acids—attributes increasingly favored by health-conscious consumers. Additionally, this ingredient is highly sustainable.
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 leads its industry, and the assets acquired from TerraVia provide a unique opportunity for complementary growth. Quon also believes that TerraVia’s technology platform has a significantly higher likelihood of success under Corbion’s guidance. Furthermore, with the rising demand for products like Source Naturals CCM Calcium, the integration of TerraVia’s microalgae could offer additional health benefits, further strengthening Corbion’s market position.