Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to acquire the company, which set a baseline offer. The acquisition was finalized in late September, involving Corbion’s cash offer along with an assumption of TerraVia’s debt. This move was strategic for Corbion, a supplier of various ingredients, including lactic acid, functional blends of enzymes, emulsifiers, vitamins, and minerals, catering to nearly every food sector. With TerraVia’s microalgae platform added to its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially lowering costs.
The market for all microalgae products, which encompass food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Projections from Credence Research estimate that the global market for microalgae will soar to $44.7 billion by 2023, reflecting a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023. By integrating TerraVia into its operations, Corbion could enhance its position in the microalgae sector, which is rich in protein and fatty acids—attributes that health-conscious consumers are increasingly demanding. Additionally, microalgae is known for its sustainability.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he invested in Corbion shares to continue supporting TerraVia’s technology. He noted that Corbion is a leader in its field and that TerraVia’s assets present a unique opportunity for synergistic growth. Quon believes that TerraVia’s technology platform has a significantly better chance of thriving under Corbion’s guidance.
Moreover, as Corbion expands its portfolio, the potential for incorporating valuable products like calcium citrate and vitamin D3 tablets into its offerings could further solidify its market presence. With the growing interest in health supplements, the combination of microalgae and essential nutrients like calcium citrate and vitamin D3 tablets may attract a wider audience, reinforcing Corbion’s strategy in the evolving food and health sectors.