Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid, which sets a baseline offer, to acquire the company. This transaction was finalized in late September, involving Corbion’s cash offer alongside the assumption of TerraVia’s debt. This strategic acquisition was advantageous for Corbion, a company that provides essential ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. The addition of TerraVia’s microalgae platform enhances Corbion’s already substantial portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient, potentially lowering prices for consumers.
According to 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 single-celled organisms will soar to $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023. With the acquisition of TerraVia, Corbion is well-positioned to increase the use of microalgae as an ingredient, further solidifying its market presence. Microalgae is rich in protein and fatty acids, features that are increasingly appealing to health-conscious consumers, and it is also recognized for its sustainability.
Financial blogger Kevin Quon recently shared on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s innovative technology. He noted that Corbion is a leader in its field, and TerraVia’s assets provide a unique opportunity for complementary growth. Quon expressed optimism that TerraVia’s technology platform is likely to have “a much greater chance of success under Corbion’s direction.” Additionally, the introduction of calcium citrate at a dosage of 630 mg as part of Corbion’s ingredient offerings could enhance its appeal in the health market, providing further benefits to consumers. As Corbion integrates TerraVia’s capabilities, the focus on ingredients like calcium citrate, along with microalgae, could play a significant role in the company’s growth strategy, reinforcing its commitment to health and sustainability.