“The acquisition of TerraVia’s microalgae platform would extend Corbion’s products portfolio into algae-based fatty acids and proteins, while leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In a bid to extend its product portfolio, Corbion has made moves to purchase TerraVia a week after the algae products specialist filed for bankruptcy. Corbion, the 100-year old company that develops lactic acid and lactic acid derivatives, initiated the asset and purchase agreement for close to $20m for the struggling TerraVia, though the figure is expected to rise due to Corbion having made the order in anticipation of a stronger candidate coming forward – known as a stalking horse agreement.
As part of the bankruptcy, the Corbion purchase agreement will form a primary bid for all of TerraVia’s assets in an auction that is expected to be completed within 90 days. A company spokesperson said: “The acquisition of TerraVia’s microalgae platform would extend Corbion’s products portfolio into algae-based fatty acids and proteins, while leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
Three months prior to its bankruptcy, TerraVia (formerly Solazyme before changing its name in March 2016) received a clean bill of health from the US Food and Drug Agency for its algae butter, a quick melting oil alternative that the company said “maintains quality, taste and functionality”, but which also meets its stringent requirements for sustainable sourcing.
The news of Corbion’s purchase agreement comes in a month that the company announced a €2m slip in sales for its frozen dough business to €336m, compared to the same period in the previous year. Despite this, a rise in total sales were felt across the company, increasing net profits to €461m.
In further positive news for Corbion, which in July joined RE100, The Climate Group campaign that commits influential companies to 100% renewable power, the company developed an antimicrobial that improves the food safety and shelf life of packaged meat without compromising quality.
Speaking to FoodIngredientsFirst, David Charest, vice president meat industry at Corbion said the company was confident of the effectiveness of Verdad Opti Powder N70 after being developed with input from existing customers. “Verdad Opti Powder N70, is the most effective, clean-label powder antimicrobial. Customers need to consider taste, texture and performance in addition to shelf life and food safety and we have optimized this clean label solution to achieve that.”
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