Chinese private equity firm Centurium Capital, the key investor behind Luckin Coffee, has reportedly acquired specialty coffee chain Blue Bottle Coffee from Nestlé.
According to local media reports, Centurium Capital will acquire Blue Bottle’s global cafe operations for less than US$400 million. Nestlé is expected to retain other parts of the business, including Blue Bottle-branded coffee machines, capsule systems and packaged coffee products.
Sources familiar with the matter said the agreement has already been signed, although the transaction has yet to formally close.
The move comes as Luckin Coffee continues to expand rapidly, with the chain now operating more than 30,000 stores worldwide. The acquisition is said to support the company’s efforts to accelerate its push into the premium coffee segment.
Founded in California in 2002, Blue Bottle built its reputation in the specialty coffee market before Nestlé acquired a controlling stake in the brand in 2017 for about US$425 million.
Currently, Blue Bottle operates more than 100 locations across the US and Asia.
Last year, Bloomberg reported that Luckin Coffee was considering a bid for Blue Bottle, while Nestlé was said to be working with Morgan Stanley to review a potential sale of the business.