TerraVia files for bankruptcy as part of Corbion acquisition bid

By Simon Pitman contact

- Last updated on GMT

Microsopic image of algae, courtesy of Wikipedia
Microsopic image of algae, courtesy of Wikipedia

Related tags: Cosmetics, Bankruptcy

California-based algae ingredients supplier Terravia has filed for bankruptcy as part of efforts to enable Corbion to acquire the troubled business.

The company has filed for voluntary chapter 11 bankruptcy that involved a commitment to debtor-in-possession financing to support the ongoing operations of the business while the acquisition process is finalized.

TerraVia has entered into a “stalking horse” stock and asset purchase agreement that will allow Corbion to acquire all of TerraVia’s assets as a bankruptcy sale.

Assets and $20 million in cash

The agreement will see Netherlands-based Corbion pay $20 million in cash with the assumption of certain liabilities, but the offer is also subject to higher or better offers coming in as part of the ongoing bidding process.

This will mean that Corbion would be taking on any financial obligations and debts that TerraVia might currently have and its current joint ownership, undertakings that are likely to push the final price of the sale up.

The chapter 11 bankruptcy and debtor-in-possession will enable the company to continue doing business until the acquisition goes through, while also fulfilling legal requirements for the sales itself.

TerraVia is a leader in algae-based products

TerraVia is a plant-based food, nutrition, and specialty ingredients company that manufacturers a range of specialty personal care ingredients for strategic partners.

Its AlgaPur and GoldenChlorella aim to deliver tangible cosmetic benefits to a range of skin and hair care products, while the company is also planning on launching the AlgaSom and AlgaProtein cosmetic powders in the near future.

Last year TerraVia signed an agreement with Tengram to buy a majority stake in the Algenist skin care, makeup brand and algae ingredient platform.

TerraVia established the Algenist business with Tengram back in 2011 and built it into a successful brand in the natural and organic space.  

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