Corbion today announced the completion of the acquisition of substantially all assets of TerraVia Holdings ("TerraVia"). As a result, its broad and diverse platform centered on innovative food and specialty ingredients derived from microalgae, has now become part of Corbion.

Corbion has paid a cash purchase price of approximately US$ 20 million. Corbion expects the total investments to be substantially in excess of the cash purchase price. TerraVia`s operations are currently loss making. The acquisition is expected to bring high value creation potential.

Tjerk de Ruiter, CEO of Corbion: "We are looking forward to welcoming a team of highly dedicated colleagues to the global Corbion family. TerraVia brings us a versatile microalgae-based platform which will enable us to expand into the field of producing specialty lipids and proteins, structured fats and tailored oils. TerraVia`s IP portfolio and R&D pipeline, as well as its partnerships with industry leaders, provide high-growth opportunities for many years to come. At the same time, we are of course aware of the challenge of bringing the business from promise to commercial success. Corbion`s more than 80 years of reliably and economically running industrial-scale fermentation plants and producing sustainable ingredient solutions will help us turn the TerraVia assets into profitable businesses in the coming years."

San Francisco-based TerraVia leverages its microalgae platform to deliver high-value ingredients with clear benefits, such as Omega-3 oils for animal nutrition and tailored oils, structured fats and proteins for food, personal care and industrial applications. It operates an R&D center and pilot facility in San Francisco, a demonstration plant in Peoria (Illinois) and an industrial scale plant in Brazil in a joint venture (50.1% owned by TerraVia) with Bunge.

Financial guidance

• The acquisition is expected to enhance Corbion`s long term pro-forma¹ sales growth by 100bps p.a.

• Operating expenses (S, G&A and R&D combined): More than 50% reduction in 2018 compared to TerraVia levels reported in 2016²

• Pro-forma¹ EBITDA expected to be positive from 2020 onwards

• EBITDA impact: negative in 2017 and coming years due to high R&D intensity, while majority of short term revenue generating capacity is recorded in unconsolidated³ SB Oils joint venture (50.1% ownership)

  • EBITDA impact is expected to be max. US$ -25M per annum in the coming years

  • EBITDA impact range for 2017: US$ -7M to -12M

• As 50.1% owner of the SB Oils joint venture, Corbion will also guarantee half of the US$ 45M outstanding debt

• Expected max. adverse impact on Net Debt/EBITDA ratio: increase by 0.5 - 0.7 x