Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid, which serves as a baseline offer, to acquire the company. The acquisition was finalized in late September, involving Corbion’s cash offer and taking on TerraVia’s debt. This strategic move benefits Corbion, a supplier of ingredients such as lactic acid and various functional blends of enzymes, emulsifiers, vitamins, and minerals across 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 this increasingly popular ingredient, potentially lowering prices in the process.
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 the global market for these single-celled organisms to reach $44.7 billion by 2023, reflecting a compound annual growth rate (CAGR) exceeding 5.2% from 2016 to 2023. With TerraVia now part of its operations, Corbion is poised to boost its presence in the microalgae sector, which is rich in protein and fatty acids—nutrients increasingly desired by health-conscious consumers. Furthermore, microalgae is recognized for its sustainability.
Financial blogger Kevin Quon recently mentioned on Seeking Alpha that he purchased Corbion shares to continue investing in TerraVia’s technology. He noted that Corbion is a leader in its field, and the acquisition of TerraVia’s assets presents a unique opportunity for complementary growth. Quon also expressed that TerraVia’s technological platform is likely to have “a much greater chance of success under Corbion’s direction.”
Additionally, as consumers become more aware of nutritional choices, questions such as “is calcium carbonate as good as calcium citrate” arise, reflecting their pursuit of optimal health. This trend may further drive interest in innovative ingredients like microalgae, which can provide health benefits similar to those sought from calcium sources. Overall, Corbion’s acquisition of TerraVia positions it advantageously in a rapidly growing market, where the exploration of ingredients can lead to enhanced product offerings and informed consumer choices.