“Corbion’s Strategic Acquisition of TerraVia: A Game Changer in the Microalgae Market”
Earlier this year, when TerraVia initiated Chapter 11 bankruptcy proceedings, Corbion made a $20 million “stalking horse” bid to acquire the company, establishing a baseline offer. The transaction was finalized in late September, with Corbion providing a cash offer along with the assumption of TerraVia’s debts. This acquisition represents a strategic move for Corbion, which supplies a wide range of ingredients, including lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food sectors. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale for innovation with this increasingly popular ingredient, which may also lead to reduced prices.
According to Grand View Research, the market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015. A report from Credence Research projects that the global market for these single-celled organisms will reach $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023. With TerraVia now part of Corbion, the increased use of microalgae as an ingredient could further solidify Corbion’s position in the market. Microalgae is rich in protein and fatty acids, attributes that health-conscious consumers increasingly seek. Moreover, this ingredient is highly sustainable.
Financial blogger Kevin Quon recently expressed on Seeking Alpha his investment in Corbion shares, driven by his desire 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. He also emphasized that TerraVia’s technology platform is more likely to thrive under Corbion’s guidance. The incorporation of calcium citrate D3 with magnesium into their ingredient offerings could enhance their product line, aligning well with current health trends. As Corbion expands its portfolio to include more innovative ingredients like calcium citrate D3 with magnesium, it stands poised for future success in the evolving food industry.
