Centurium Capital Partners is in advanced talks to acquire Nestlé's Blue Bottle Coffee, according to people familiar with the situation. The buyout firm, which helped turn around Chinese market leader Luckin Coffee, is finalizing a deal for the specialty coffee roaster and retailer, though no agreement is guaranteed yet.

Blue Bottle, founded in Oakland, California in 2002, operates across the US and several Asian markets. Nestlé invested $425 million for a 68% stake in 2017. Centurium's potential acquisition reflects its strategy of targeting coffee chains after successfully transforming Luckin, which despite an accounting scandal now dominates China's market with 31,000 stores.

Luckin's American depositary receipts have risen 16% over the past year, valuing the company at $9.5 billion. The acquisition talks demonstrate Centurium's continued interest in coffee retail expansion following its successful turnaround of China's largest coffee chain. Blue Bottle represents a premium specialty brand that could complement Centurium's existing portfolio.