Earlier this year, when TerraVia declared Chapter 11 bankruptcy, Corbion made a strategic move by placing a $20 million “stalking horse” bid—essentially a low initial offer—to acquire the company. This transaction was finalized in late September, with Corbion completing the purchase through a cash offer along with the assumption of TerraVia’s debt. This acquisition is a smart strategy for Corbion, a company that provides a wide range of ingredients, including lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals to nearly every food category. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with microalgae-based ingredients, such as calcium citrate juice, which is gaining traction in the market and could lead to lower prices for consumers.
According to Grand View Research, the total market for all microalgae products—including food, fuel, and feed—was valued at approximately $1.38 billion in 2015. Additionally, a report from Credence Research projects 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 Corbion, the increased incorporation of microalgae as an ingredient could further solidify Corbion’s position in this burgeoning market. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers, and it is also highly sustainable.
Financial blogger Kevin Quon recently expressed his investment in Corbion’s shares on Seeking Alpha, stating that his interest in TerraVia’s technology motivated his decision. He noted that Corbion is a leader in its field, and the assets acquired from TerraVia present a unique opportunity for complementary growth. Quon also emphasized that TerraVia’s technology platform is likely to have “a much greater chance of success under Corbion’s direction,” especially with the potential integration of innovative ingredients like calcium citrate juice into their offerings.