Corbion: Teslin Participaties acquires substantial stake in Dutch fermentation specialist

Teslin Participaties has taken a 5 percent stake in Corbion, a Dutch fermentation specialist and global market leader in lactic acid and lactic acid derivatives, with a strong position in omega-3 algae oil besides. We see a product portfolio here that can support revenue growth, margin improvement and free cash flow in the coming years.

Corbion originated from the Centrale Suiker Maatschappij and has grown into a leading player in sugar-based fermentation, converting sugar into high-value functional ingredients — mainly lactic acid and its derivatives, complemented by omega-3 algae oil.

Barriers to entry in these markets are high: fermentation processes are complex, capital-intensive and require knowledge built up over decades. Corbion combines that knowledge with economies of scale and strategically located production sites close to affordable, reliable sugar sources. Its recently opened lactic acid plant in Thailand is the most advanced of its kind, offering clear cost advantages that should strengthen Corbion's cost position and improve margins as volumes rise. With the major investment in this plant now largely behind it, free cash flow can grow more strongly in the coming years.

Lactic acid is used in many end applications: shelf-life solutions for meat, fish, bakery products and beverages; coatings, crop protection and pharmaceutical uses (e.g. as dialysate and for pH regulation of infusion fluids); and biopolymers for controlled drug release, including in the treatment of schizophrenia. Because lactic acid occurs naturally in the human body, it fits well with applications that come into contact with humans.

Demand for these applications is growing structurally, driven by rising prosperity, higher food safety and quality requirements, greater attention to health, and demand for alternative materials in medical applications. Corbion is increasingly focusing on complex solutions that solve specific customer problems — products that require years of R&D, generate more added value, and where Corbion often holds a leading position in markets with few suppliers.

Omega-3 algae oil is a second important growth market, supplied mainly to aquaculture and animal feed, and increasingly to human supplements. Corbion sells the algae oil to fish-feed producers supplying salmon farming among others — a market seeking sustainable alternatives to fish oil from wild catch as stocks deplete and quotas tighten. Corbion holds a leading position here, which we expect to support profitable growth in the coming years.

We built up our position over recent quarters at a valuation we consider attractive. Corbion is at a favourable inflection point: the sugar price (roughly a third of its cost price) has fallen sharply, while fish oil prices — an important alternative to omega-3 algae oil — have risen sharply, a combination that provides tailwind for growth and margin recovery alongside cost savings and new product innovation.

The targets Corbion communicated at its Capital Markets Day in November 2025 — double-digit earnings-per-share growth over 2025-2028, combined with cumulative free cash flow of €270 million — appear achievable to us, with a larger share of that cash flow now available for shareholders as major investments are behind it.

Management also appears aware of the need to create more shareholder value: a first step is the planned sale of the PLA joint venture with Total, which could free up room for shareholder returns via buybacks or an additional dividend.

Alongside these positive developments, we see room for further improvement: the outlook is attractive given the current valuation, though management has so far avoided larger strategic steps. As a shareholder, we will engage constructively in the next phase to help create further long-term value for shareholders and other stakeholders.

This investment fits well within our investment philosophy: well-positioned companies with a solid foundation, a clear outlook for value creation, and room for further improvement.