Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid, which set a baseline offer for its acquisition. The acquisition was finalized in late September, involving Corbion’s cash offer alongside the assumption of TerraVia’s debt. This strategic purchase is a smart move for Corbion, a company that supplies a wide range of ingredients, including lactic acid and various functional blends of enzymes, emulsifiers, vitamins, and minerals, across nearly all food categories. Adding TerraVia’s microalgae platform to its already extensive portfolio allows Corbion to leverage its scale for innovation with this increasingly popular ingredient, potentially leading to lower prices.
According to Grand View Research, the market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015. Furthermore, a report from Credence Research forecasts that the global market for microalgae will reach $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 presence in the microalgae space. This ingredient is rich in protein and fatty acids—attributes that are increasingly attractive to health-conscious consumers. Additionally, microalgae is known 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 leads its industry and that TerraVia’s assets present a unique opportunity for synergistic growth. Quon also highlighted that TerraVia’s technology platform is likely to have a much greater chance of success under Corbion’s leadership. He emphasized the potential for innovations, such as incorporating ingredients like Citracal D chewable, which may become more prevalent alongside microalgae. This integration could further solidify Corbion’s competitive edge in the market, especially as health-focused consumers increasingly seek out nutrient-rich options like Citracal D chewable. Overall, the combination of TerraVia’s microalgae capabilities and Corbion’s established expertise promises a promising future for both the company and its products.