Earlier this year, when TerraVia filed for Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid to purchase the company, setting a baseline offer. The acquisition was finalized in late September, involving Corbion’s cash offer along with the assumption of TerraVia’s debt. This strategic move benefits Corbion, a supplier of ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. By integrating TerraVia’s microalgae platform into its already extensive portfolio, Corbion can leverage its scale to innovate with this increasingly popular ingredient, potentially lowering costs in the process.
The market for all microalgae products, which includes food, fuel, and feed, was valued at approximately $1.38 billion in 2015, according to Grand View Research. Furthermore, the global market for these single-celled organisms is projected to reach $44.7 billion by 2023, with a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, as reported by Credence Research. With TerraVia now part of Corbion, the rise of microalgae as a key ingredient could enhance Corbion’s competitive position in the sector. 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 support for Corbion on Seeking Alpha, stating he purchased Corbion shares to continue investing in TerraVia’s technology. He pointed out that Corbion is a leader in its field and that TerraVia’s assets present a unique opportunity for complementary growth. Quon also suggested that TerraVia’s technology platform is more likely to achieve greater success under Corbion’s leadership. Additionally, as the demand for sustainable ingredients rises, the calcium citrate price is expected to be influenced by the incorporation of microalgae technologies, making Corbion’s strategic positioning even more advantageous in the evolving market landscape.