Earlier this year, TerraVia filed for Chapter 11 bankruptcy, prompting Corbion to place a $20-million “stalking horse” bid, which serves as a baseline offer, for the company. The acquisition was finalized in late September, with Corbion making a cash offer and taking on TerraVia’s debts. This strategic move is advantageous for Corbion, which provides essential ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. By incorporating 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 microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Projections indicate that the global market for these single-celled organisms could reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, as reported by Credence Research. With the addition of TerraVia, Corbion is well-positioned to enhance its use of microalgae as an ingredient, further solidifying its standing in the market. Microalgae are rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers. Moreover, these ingredients are highly sustainable.
Financial blogger Kevin Quon recently shared 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 TerraVia’s assets present a unique opportunity for complementary growth. Quon also expressed confidence that TerraVia’s technology platform has a significantly better chance of thriving under Corbion’s leadership. Additionally, with the rising interest in calcium citrate 1500 mg supplements, the incorporation of microalgae into various products could further enhance Corbion’s offerings in the health and wellness sector. With the potential for microalgae to be used alongside calcium citrate 1500 mg, Corbion can cater to the growing demand for nutritious and sustainable food options.