Sudden! Ruixing's major shareholder Dazheng Capital acquires Blue Bottle Coffee!

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This afternoon, Late LatePost exclusively reported that Dazheng Capital, the largest shareholder of Ruixing Coffee, won Blue Bottle Coffee and is about to complete a transaction with Nestlé.

The report mentioned that several people familiar with the matter confirmed this development to Late LatePost. A person close to Ruixing revealed that Dazheng bought Blue Bottle Coffee's global store, and Nestlé will retain Blue Bottle's coffee machine and capsule business. Another person close to Dazheng said that the transaction has been signed and delivery has not yet been completed.

In fact, in mid-December last year, Bloomberg reported that Ruixing and its main shareholder Dazheng Capital were considering bidding for Nestlé's boutique coffee brand Blue Bottle Coffee. At the same time, Reuters reported that Nestlé intends to sell Blue Bottle Coffee's physical store business, and sources pointed out that its final transaction price is expected to be significantly lower than the acquisition valuation of the year.

It is worth mentioning that 36Krypton reported that Dazheng had reached an agreement with Nestlé to acquire the global stores of Nestlé's Blue Bottle Coffee for less than US$400 million. In addition, 36Krypton revealed that once Dazheng's transaction with Nestlé is completed, Nestlé will still retain Blue Bottle's FMCG business, such as coffee beans, instant drinks, and ready-to-drink drinks.

This sudden news has undoubtedly attracted the attention of people from all walks of life in the industry. Many domestic and foreign media have asked Dazheng Capital, Lucky, Nestle, Blue Bottle Coffee and other parties to verify whether the above news is true, but at present, no specific response has been given.

In addition, the 36Krypton report quoted a person in the coffee industry, saying that Ruixing is intensively contacting "brand-oriented" recruitment targets in the market to prepare for the next integration of blue bottle coffee."We need to sell a cup of more than 40 cups of coffee, the brand is definitely the top priority."

In fact, in the past half a year, Dazheng Capital, the actual controller of Ruixing Coffee, has shown interest in Starbucks, Costa, Mstand, %Arabica and other brands. However, during the contact process, people familiar with the matter revealed that since Dazheng is a shareholder of Ruixing and Starbucks wants to retain part of its stake in its China business, the possibility of the deal being reached is slim.

Although Costa has "good fundamentals in the UK, with an annual profit of more than 200 million US dollars," it has many shortcomings, such as many old stores in Europe and difficulty in renovation. Costa's China business is not optimistic, so Dazheng gave up participating in Costa's bidding.

As for other brands, investment industry sources revealed that although Dazheng Capital had contact with %Arabica, due to the fact that %Arabica's performance was not as good as Blue Bottle Coffee, and the equity of %Arabica was relatively scattered and mergers and acquisitions were difficult, considering multiple factors, Dazheng and %Arabica The final transaction did not continue to advance.

Picture from: Internet

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