Centurium Capital, the Chinese investment firm behind Luckin Coffee’s resurgence, has agreed to purchase Blue Bottle Coffee’s global store operations from Nestle for under $400 million. Nestle will retain Blue Bottle’s consumer goods business. The deal comes as the unprofitable brand reported approximately $250 million in revenue over the past year and projects profitability by 2026. Centurium holds 23.28% of Luckin with over 53% voting rights; the acquisition fills a gap in its coffee portfolio, potentially leveraging Luckin’s supply chain to accelerate Blue Bottle’s growth. Blue Bottle has opened 15 China locations since its 2022 entry.

Related reading: Häagen-Dazs, Starbucks mull overhauls in China to fend off powerful local rivals